Stocks closed higher on the day and week, with the Dow Jones Industrial Average posting its first six-session string of gains in more than four months. However, price action was restrained on light trading volume ahead of the three-day Easter holiday. Gains were also limited by anticipation about Friday's monthly employment report, which is likely to influence trading early next week.

Today, the Dow Jones industrial average closed up 30.15 or 0.24% to 12,560.20, the broader S&P 500 closed up 4.39 or 0.30% to 1,443.76, and the Nasdaq closed up 12.65 or 0.51% to 2471.34. For the week, the Dow gained 1.7%, the S&P gained 1.6%, and the Nasdaq gained 2.1%.

Market breadth was positive. On the New York Stock Exchange, winners beat losers by 19 to 12 on volume of 1.246 billion shares. On the Nasdaq, advancers edged decliners 16 to 13 on volume of 1.558 billion shares.

With the Iranian situation solved, people feeling good ahead of the holiday, and easing of oil prices, saw the stocks higher. However, tomorrow the release of the Labor Department's March employment report is awaited. Employers are expected to have added 135,000 jobs to their payrolls after adding 97,000 in the previous month. A report showing the number of Americans filing new claims for unemployment last week rose more than expected. The unemployment rate is expected to have risen to 4.6% in March from 4.5% in February.

Recent spate of weaker-than-expected economic reports have raised concerns about the pace of economic growth in 2007. At the same time, other reports have shown increased pricing pressure. This has sparked confusion as to how the Federal Reserve might handle the combined problems of slowing growth and higher inflation. Because of this, a particularly strong March payrolls report would probably weigh on stocks Monday, while a slightly weaker to in line report would be preferable.

Shares of Daimler Chrysler (NYSE: DCX) closed up $3.73 or 3% to $84.80, after billionaire investor Kirk Kerkorian offered to buy Chrysler for $4.5 billion. His bid is contingent upon reaching a deal on a new labor agreement with the United Auto Workers union. He would offer ownership stakes to the union and its membership as well as Chrysler management were he to buy it. The offer is contingent on reaching an "equitable arrangement" with DaimlerChrysler for it to assume some of the unfunded pension liabilities and health care costs of Chrysler retirees.

Stock of Micron Technology (Nasdaq: MU) closed down $0.56 or 4.6% to $11.51, after reporting quarterly earnings loss that was steeper than expected. The chipmaker also said that prices for memory chips have stabilized recently and that demand should pick up this year. The company took a $52 million loss in its second quarter and was cut to sell by Goldman Sachs. For the first quarter of fiscal 2007, the company reported a profit of $192 million, up from $63 million earned in the same period last year. This topped analysts' consensus estimate. Quarterly sales rose 16% to $1.58 billion, helped by demand for DRAM memory chips used in PCs being built ahead of Microsoft Corp.'s release of Vista.

U.S. light crude oil for May delivery fell 10 cents to settle at $64.28 a barrel on the New York Mercantile Exchange on relief about the developments in Iran. However, any sell-off was limited by concerns about lower gas inventories.

Posted by Manuel Backus to The Markets at 07:56 PM | Permalink

Stock of Micron Technology (Nasdaq: MU) closed down $0.56 or 4.6% to $11.51, after reporting quarterly earnings loss that was steeper than expected. The chipmaker also said that prices for memory chips have stabilized recently and that demand should pick up this year. The company took a $52 million loss in its second quarter and was cut to sell by Goldman Sachs. For the first quarter of fiscal 2007, the company reported a profit of $192 million, up from $63 million earned in the same period last year. This topped analysts' consensus estimate. Quarterly sales rose 16% to $1.58 billion, helped by demand for DRAM memory chips used in PCs being built ahead of Microsoft Corp.'s release of Vista.

Posted by Manuel Backus to Stock Ideas at 07:54 PM | Permalink

Shares of Daimler Chrysler (NYSE: DCX) closed up $3.73 or 3% to $84.80, after billionaire investor Kirk Kerkorian offered to buy Chrysler for $4.5 billion. His bid is contingent upon reaching a deal on a new labor agreement with the United Auto Workers union. He would offer ownership stakes to the union and its membership as well as Chrysler management were he to buy it. The offer is contingent on reaching an "equitable arrangement" with DaimlerChrysler for it to assume some of the unfunded pension liabilities and health care costs of Chrysler retirees.

Posted by Manuel Backus to Stock Ideas at 07:53 PM | Permalink

Stocks rose slightly after a raft of economic reports - on the service-sector, employment and factory orders - came in weaker than expected and tempered an earlier boost from falling crude oil prices. Investors eyed lower oil prices and weaker than expected reports.

Today, the Dow Jones industrial average closed up 19.75 to 12,530.05, the broader S&P 500 closed up 1.60 to 1,439.37, and the Nasdaq closed up 8.36 or 0.34% to 2458.69.

Market breadth was positive. On the New York Stock Exchange, winners topped losers 17 to 14 on volume of 1.40 billion shares. On the Nasdaq, decliners topped advancers by a narrow margin of 15 to 14 on volume of 1.77 billion shares.

Investors welcomed developments in Iran and a drop in oil prices but held back amid a slew of weak reports on the economy. The market is certainly treading water after a strong day yesterday. Additionally, there is some nervousness about the first-quarter earnings reporting period, which gets rolling later in the month.

In economic news, factory orders rose 1% in February after falling a revised 5.7% in January. This is against the expected 1.9% rise. The Institute for Supply Management's service sector index fell to 52.4 in March from 54.3 in February. Economists thought it would rise to 54.7. Employers added 106,000 private sector jobs in March. The figure was short of expectations and raised concerns ahead of the more closely watched monthly report from the Labor Department, expected Friday.

Stock of Microsoft (Nasdaq: MSFT) closed up $0.63 to $28.50, after Citigroup raised its fiscal third-quarter earnings estimates for the company, reflecting what it said was the successful launch of Windows Vista and Office 2007.

Shares of Best Buy (NYSE: BBY) closed down $1.24 to $47.89, despite reporting higher quarterly earnings that topped estimates. It reported an 18.5% rise in fourth-quarter profit, helped by sales of flat-panel televisions, and announced that it plans to offer Apple computers in 200 stores this year. Net income for the fiscal fourth quarter ended March 3 rose to $763 million, from $644 million a year earlier. Revenue increased 21% to $12.9 billion, and same-store sales increased 5.9%.

Shares of Daimler Chrysler (NYSE: DCX) closed down $0.38 to $82.57, after the CEO confirmed that the company is talking with potential buyers about its money-losing Chrysler unit. However, he was not able to give details of discussions and said all options for the automaker are still on the table.

U.S. light crude oil for May delivery fell 26 cents to settle at $64.38 a barrel on the New York Mercantile Exchange after Iran's president pardoned and pledged to release the 15 British sailors and marines being held. The apparent resolution to the standoff provided some comfort to investors.

Posted by Manuel Backus to The Markets at 05:55 PM | Permalink

Shares of Best Buy (NYSE: BBY) closed down $1.24 to $47.89, despite reporting higher quarterly earnings that topped estimates. It reported an 18.5% rise in fourth-quarter profit, helped by sales of flat-panel televisions, and announced that it plans to offer Apple computers in 200 stores this year. Net income for the fiscal fourth quarter ended March 3 rose to $763 million, from $644 million a year earlier. Revenue increased 21% to $12.9 billion, and same-store sales increased 5.9%.

Posted by Manuel Backus to Stock Ideas at 05:55 PM | Permalink

Shares of Daimler Chrysler (NYSE: DCX) closed down $0.38 to $82.57, after the CEO confirmed that the company is talking with potential buyers about its money-losing Chrysler unit. However, he was not able to give details of discussions and said all options for the automaker are still on the table.

Posted by Manuel Backus to Stock Ideas at 05:54 PM | Permalink

Stocks rallied broadly lifting the Dow Jones Industrial Average by nearly 130 points to a five-week high, as investors cheered a drop in crude oil prices amid easing tensions between the UK and Iran, and with sentiment also lifted by a rise in pending homes sales in February. It is evident that if there is any good news on housing, the market is going to rally because sub-prime-driven volatility has been the big boogeyman for the market.

Today, the Dow Jones industrial average closed up 128.00 or 1.03% to 12,510.30, the broader S&P 500 closed up 13.22 or 0.93% to 1,437.77, and the Nasdaq closed up 28.07 or 1.16% to 2450.33.

Market breadth was positive. On the New York Stock Exchange, winners topped losers by around 3 to 1 on volume of 1.56 billion shares. On the Nasdaq, advancers beat decliners 19 to 9 on volume of 1.99 billion shares.

The February pending home sales index showed a surprise rise, versus economists' expectations for a decline. The Pending Home Sales Index, based on contracts signed in February, rose 0.7% to 109.3 from a downwardly revised level of 108.5 in January. Analysts polled ahead of the realtor report were expecting the index to come in at 108.2.

General Motors (NYSE: GM) reported that it's U.S. sales slipped 4% to 345,418, a bit worse than the forecast of a 1.3% decline. Toyota (NYSE: TM) saw its U.S. sales rise nearly 12% to hit a record 242,675 in the month. Honda (NYSE: HMC) saw sales rise 11% to also top forecasts of only modest gains, as did rival Japanese automaker Nissan (Nasdaq: NSANY). Korean automakers Hyundai and Kia posted narrow gains. Ford reported a 9% decline in sales to 264,975 vehicles.

Shares of Apple Inc. (Nasdaq: AAPL) advanced 1% on charges from the European Commission that major record companies, including Warner Music Group (NYSE: WMG), are forcing Apple to restrict access to music downloads on its iTunes online store by country. If found guilty, companies face a fine of up to 10% of annual global revenue.

Shares of Marshall & Llsley (NYSE: MI) closed up $3.97 to $49.83, on reports that it is set to spin off its payment processing unit Metavante Corp. Additionally, private equity firm Warburg Pincus is expected to buy a stake in the spin-off valued at about $4 billion.

U.S. light crude oil for May delivery fell 2% on the New York Mercantile Exchange after Britain and Iran said diplomacy could end the conflict over 15 British naval personnel held in the Gulf.

Posted by Manuel Backus to The Markets at 10:12 PM | Permalink

Stocks closed slightly higher as a raft of deals, including a $29 billion leveraged buyout of First Data Corp. (NYSE: FDC), weighed against a weak manufacturing report and high oil prices. While the news of mergers and other equity deals indicated that there's still a lot of money out there, the ISN numbers were a disappointment.

Today, the Dow Jones industrial average closed up 27.95 or 0.23% to 12,382.30, the broader S&P 500 closed up 3.69 or 0.26% to 1,424.55, and the Nasdaq composite ended little changed closing up 0.62 or 0.03% to 2422.26.

Market breadth was mixed. On the New York Stock Exchange, winners topped losers 5 to 3 on volume of 1.5 billion shares. On the Nasdaq, decliners and advancers were roughly even on volume of 1.76 billion shares.

The new quarter started off on a quiet note, as investors welcomed the day's deals news, but held back a bit at the start of a big week for economic reports. The Institute for Supply Management's manufacturing index fell to 50.9 in March from 52.3 in the previous month, just short of forecasts for a drop to 51.1. The prices paid index, which measures inflationary pressures in the sector, climbed to 65.5 in March from 59.0 in February. New orders, a gauge of future growth, eased to 51.6 from 54.9, while the employment index fell to 48.7 from 51.1. A slowing economy paired with higher inflation, as the ISM report seemed to indicate, would be particularly troublesome for the Federal Reserve to manage and for stock investors to handle.

Stock of First Data Corp. (NYSE: FDC) closed up $5.55 or 20.6% to $32.45, after agreeing to be bought for $429 billion in cash by private equity firm Kohlberg Kravis Roberts & Co. However, it also said it plans to actively seek other bids. This is the latest in a string of high-profile leveraged buyouts of established U.S. corporations in an era of easily accessible financing. Under the agreement, First Data shareholders would be paid $34 each share of the company they own, a 26% premium to where the shares closed on March 30.

Shares of Tribune (NYSE: TRB) closed up $0.70 to $32.81, after Sam Zell won the bidding war in a deal worth $13 billion, or $34 a share. Tribune also announced it would sell the Chicago Cubs baseball team after the 2007 baseball season ends in a move to relieve some of its debt.

Shares of Global Imaging Systems closed up $9.14 or 47% to $28.64, after Xerox (NYSE: XRX) said it is buying it for $1.5 billion in cash. Shares of Xerox closed up $0.19 or 1% to $17.08. This places the deal at $29 per share. This gives Xerox access to their extensive customer base.

Shares of Apple (Nasdaq: AAPL) closed up $0.74 to $93.65, after the EMI Group struck a deal with iTunes to sell its music catalog without anti-piracy protection, known as DRM restrictions. EMI, which owns the Beatles catalog, said that music from the Beatles is not part of the deal with Apple.

Stock of Merck (NYSE: MRK) closed up $0.84 to $45.01, on news that the FDA has granted approval for its diabetes treating pill, Janumet. This combines two diabetes medicines into a single pill, ad pairs Januvia with a widely used, older generic medicine called metformin.

Shares of New Century Financial (NYSE: NEW) closed down $0.15 or 15% to $0.92, after it fled for bankruptcy protection. This is the largest U.S. independent provider of home loans to people with poor credit histories before collapsing amid rising subprime delinquencies and defaults started rising. New Century Financial Corp. will immediately cut 3,200 jobs, as part of its Chapter 11 bankruptcy reorganization. Additionally, it has agreed to sell its servicing assets and platform to Carrington Capital Management LLC for $139 million, subject to bankruptcy approval.

U.S. light crude oil for May delivery rose 7 cents to settle at $65.94 a barrel on the New York Mercantile Exchange, giving back bigger gains.

Posted by Manuel Backus to The Markets at 11:42 PM | Permalink