Stock Market Recap: Yahoo Sinks after Microsoft Walks Away from Bid

Stocks closed down across the board led by the DJIA giving back -88.66 or .80%, S&P500 fell -12.86 or .60% and the NASDAQ lost -6.41 or .59%. It was a volatile session across asset classes with metals accelerating on the upside on power rationing and Oil hitting an all time intraday high.

Yahoo
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fell more than 14% to 24.37 after Microsoft
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withdrew its $47.5 billion dollar offer for the beleaguered internet company. This is the largest drop in 2 years.

Countrywide Financial
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collapsed another 9.54% to 5.410 on analyst comments that Bank of America
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should pull out of the takeover deal. This caused CFC to experience the largest change in option volatility across all US traded equity options today.

Sprint
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surged over 10% today to 8.72 on rumors of its money losing unit Nextel being spun off.  Nextel was acquired in 2005 for about $35 billion.

Oil climbed above 120.00/barrel for the first time in history today, settling at 119.97. This is an increase of 3.1% or $3.65 on supply/ demand concerns.

Market Snapshot

Dow

-88.66 12,969.54

NASDAQ

-12.86 2,464.12

S&P 500

-6.41 1,407.49

Economic
News

ISM Services (Apr): Actual 52.0, Consensus 49.1

Productivity Prel (Q1): Consensus 49.1%, Prior 49.6%

Pending Home Sales (Mar): Consensus -1.0%, Prior -1.9%

Crude Inventories (05/03): Consensus N/A, Prior 3848K

Consumer Credit (Mar): Consensus 6.0B, Prior 5.2B

Initial Claims (05/03): Consensus 375K, Prior 380K

Wholesale Inventories (Mar): Consensus 0.5%, Prior 1.1%

Trade Balance (Mar): Consensus -$61.3B, Prior -$62.3B