Dow was not able to hold 13K this AM. Dow was down 88 taking it below 13K, internals weren't too bad with decliners ahead of advancers by only 40% & NAZ was down 8. The breakup of the Yahoo (YHOO) purchase by Micrososft (MSFT) didn't help stocks. In addition, oil reached another record, above 120, on supply concerns primarily from Nigeria. Helping the market is a report by the Institute for Supply Management that non-manufacturing index rose to 52.0 in Apr from 49.6 in the prior month. This was the biggest improvement in 7 months, economists had expected 49.1 for April. The reading supports thinking that the U.S. economy is not as disappointing as many initially thought.
Another big acquisition may be in trouble. Analysts are talking about Bank of America (BAC) revising downward the terms for Countrywide (CFC) causing CFC to drop 1. One analyst reduced his target price from 7 to 2, uh-oh! Troubled CFC has a $95B mortgage portfolio, many loans will be be subject to downward revisions. The market is taking today's news pretty well, but delays & problems with acquisitions remains a negative for the markets.
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