Stocks end down for fifth day after Bernanke
After gains early in the day, the session closed lower, with the Dow declining about 19 points
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Meanwhile, Disney announced it will cut around 200 jobs at its movie studio as it reduces its focus on home entertainment distribution of DVDs.
International Paper launched a $3.3 billion unsolicited offer for rival Temple-Inland as it dug in for what could be a prolonged battle to dominate North America's corrugated packaging business. Temple-Inland shares skyrocketed more than 40 percent. The bid helped lift other paper companies, including Weyerhaeuser.
On the tech front, Intel gained after a Citigroup research note speculated that the Dow component may enter into a deal with Apple to produce semiconductors that power devices such as the popular iPhone and iPad.
Research In Motion slipped after Morgan Keegan cut the BlackBerry maker's rating to "market perform" from "outperform." Sprint also declined after Stifel Nicolaus cut the telecom firm's rating to "sell" from "hold."
On the earnings front, PepBoys plunged over 15 percent after the car service chain, reported results that missed estimates, due to bad weather and higher gas prices that constrained consumer spending.
And Talbots tanked almost 40 percent after the women's clothing retailer warned its revenue would fall for a fifth straight quarter.
Treasury prices added to earlier losses after the government auctioned $32 billion in 3-year notes, which had a high yield of 0.765 percent and a bid-to-cover of 3.28. Auctions of 10-year notes and 30-year bonds are expected Wednesday and Thursday, respectively.
On the economic front, U.S. consumer credit outstanding jumped by $6.25 billion during April after a downwardly revised $4.82 billion rise in March, reflecting a gain in student and car loans.
The IMF is open to delaying Greece's repayment of its international loans but believes a major restructuring of its debt would create serious problems in the euro zone, according to an official.