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Published April 25, 2008 at 6:19 PM
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The markets went their separate ways Friday as Microsoft Corp.'s [MSFT] drop in profits and resistance to raise its bid for Yahoo! Inc. [YHOO] pushed down its stock and helped the Nasdaq fall into the red. Meanwhile, the Dow crept up modestly as positive earnings news from Fannie Mae [FNM] led financial stocks, and Express Holdings Inc. [XJT] rejection of a bid sent the stock to the moon. Here's a closer look at the performance of Deal Stocks on Friday:
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- Investors shied away from Microsoft as the company announced Thursday profit dropped 11% in the first-quarter and on Friday added it would not raise its bid for Yahoo!. "Our bid is quite generous, roughly eighty times earnings ... the combination would make a great company," Microsoft CEO Steve Ballmer said at a conference with business leaders in Madrid. The stock closed down $1.97, or 6.19%, to $29.83.
- Meanwhile, Ford Motors Co. [F], which recently sold its Jaguar and Land Rover units, gave back Thursday's gain as investors took profits on analysts speculation that the company still has plenty of problems to resolve. The company registered a surprising profit of $100 million buoyed by strong earnings in Europe and South America as well as a restructuring that trimmed 4,200 U.S. jobs through buyouts.
- Financial stocks such as mortgage lender Fannie Mae jumped $2.90, or 10.35%, to $30.93 as Morgan Stanley said its earnings may surpass estimates next year. Fannie Mae also said it purchased more mortgages in March than February. Overall, its mortgage commitments rose to $31 billion in March from $25 billion in February, following the easing of capital requirements.
- Lastly, regional airlines Express Holdings was the top gainer in the New York Stock Exchange, closing up $1.16, or 55.50%, to $3.25 as the company rejected SkyWest Inc.'s $181.6 million buyout offer. The offer represented a 67.5% premium over ExpressJet's closing share price on Thursday.
- Gerald Magpily
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