Stocks were expected to open mixed Monday as Microsoft (MSFT) renewed negotiations with Yahoo (YHOO).
Microsoft offered and then withdrew a buyout offer for Yahoo, but this time it's talking about an alternative deal -- a transaction with Yahoo but not an outright acquisition of the whole firm.
Oil prices, which seemed to weigh on stocks Friday, continued to rise on Monday. On the NYMEX, crude oil for June delivery was up 73 cents to $127.02 per barrel. There is speculation oil demand may be increased further by the Chinese earthquake, which has damaged hydroelectric plants and roads, as well as preparation for the Beijing Olympics, Action Economics says.
On Friday, the Dow Jones industrial average finished lower by 5.86 points, or 0.05%, at 12,986.80. The broader S&P 500 index added 1.78 points, or 0.13%, to close at 1,425.35. The tech-heavy Nasdaq composite index fell 4.88 points, or 0.19%, to end the session at 2,528.85.
On the New York Stock Exchange, 16 stocks rose in price for every 15 that fell. The ratio on the Nasdaq was 16-12 negative.
Among stocks in the news Monday, the CME Group (CME) says it finished combining the trading floors of the Chicago Mercantile Exchange and the Chicago Board of Trade, which CME acquired last year. The firm says it's on the way to $150 million in savings from the merger.
Electronic Arts (ERTS) extended its offer for Take-Two Interactive (TTWO), the publisher of the Grand Theft Auto video games, by one month to June 16.
Lowe's Companies (LOW) reported earnings of 41 cents per share, vs. 48 cents a year ago, as same-store sales fell 8.4% and total sales dropped 1.3%. The firm cited a weaker economic outlook as a reason for the profit drop, and says it expects sales to fall 6 to 8% this quarter.
Dell Inc. (DELL) says its chief financial officer, Don Carty, will resign and be replaced by Brian Gladden.
Pinnacle Gas Resources (PINN) says it will not be acquired by Quest Resources (QRCP). Either party had the right to terminate the proposed merger if it wasn't completed by May 16.
Major European indexes were mostly higher Monday. In London, the FTSE 100 index rose 0.52% to 6,336.80. Paris' CAC 40 index added 0.66% to 5,111.69, and Germany's DAX index rose 0.39% to 7,184.34.
In Asia, Japan's Nikkei 225 was up 0.35% to 14,269.61, while Hong Kong's Hang Seng index gained 0.48% to 25,742.23.
Treasury market
Bonds were mostly higher Monday. Two-year Treasury notes were off 02/32 to 99-14/32 for a yield of 2.440%, but the 10-year Treasury was up 03/32 to 100-10/32 for a yield of 3.845%; and the 30-year bond rose 06/32 to 96-30/32 for yield of 4.567%.