The U.S. unemployment rate jumped to a 26-year high of 8.5% as 663,000 jobs were in March. Overall, the markets took the unemployment numbers in stride as the Dow closed up 39.51, or 0.50%, to 8,017.59, and the Nasdaq finished up 19.24, or 1.20%, to 1,621.87. Friday's close marks the first time the Dow has broken 8,000 since February.
The Labor Department said 5.1 million jobs have been lost since the beginning of the recession. Job losses sometimes accompany mergers. One acquisition that reportedly is close to being announced is the IBM Corp.'s (NYSE:IBM) purchase of Sun Microsystems Corp. (NASDAQ:JAVA). Both stocks jumped on prospects of a finalized deal. IBM closed up $1.40, or 1.39%, to $102.22 a share, and Sun closed up 28 cents, or 3.4%, to $8.49 a share.
Meanwhile, drug store chain Rite Aid Corp. (NYSE:RAD), which shed redundant positions for its acquisition of the Brooks Eckerd chain for $3.4 billion two years ago, might be regretting the purchase now. Rite Aid announced Thursday a quarterly loss of $2.3 billion as a result of write-downs stemming from its 2007 deal. Investors paradoxically still felt bullish on the stock, which closed up a penny, or 2.2%, to 46 cents a share.
Lastly, coming off recent layoffs at its Dow Jones and newspaper divisions, media conglomerate News Corp. is looking to try its hand in e-books. News Corp. (NYSE:NWS) is on the prowl to investing in a "new device that rivals the Kindle," The Deal's Olaf de Senerpont Domis wrote. The Rupert Murdoch-led company finished up 25 cents, or 2.93%, to $8.79 a share. - Gerald Magpily
See Dealscape: Rupert Murdoch mulls e-book investmentSee Dealscape: IBM-Sun deal: From close to imminentSee Corporate Dealmaker: Rite Aid write-down shows challenges of drugstore deals
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