Monday, May 5, 2008

Stocks lower as Microsoft pulls Yahoo bid

Stocks pulled back on news that Microsoft (MSFT) pulled its bid for Yahoo (YHOO). Dow was down 89 (to 12,969), decliners ahead of advancers 3-2 & NAZ slipped 13. Volume continues to drag along, today at only 1.1B. MLPs had a good day. Their index had stalled at 293 in the last 2 weeks, but closed above 294.

On NYSE new highs vs low lows doesn't look good:

new highs 53
new low 62

IP, a former Dow stock, was one of the leading new low stocks.

When a major deal like Yahoo does not go thru, a lot of speculators get nervous about betting on the next deal. Speaking of the next deal, it appears likely that Bank of America (BAC) will readjust it's price downward for troubled Countrywide (CFC) sending that stock down 62¢ (10%).

Commodities are back in action on a weaker dollar. Oil went above the important 120 level, but closed at 119.98 up 3.66. Gold rebounded from it's lows around 850 in recent days to 872.80 up 16.70. There are no major news developments this week, so the markets will be on their own.n Good luck!

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