Stocks chopped along in negative territory for the first half of the session, with broad-based weakness across several asset classes. Financials extended their losses and weighed down the broader market. Briefing.com reported that the benchmark 10-year Note was yielding more than 3.9%, a 2009 high, and that rising Treasury yields were worrying some investors who feared higher borrowing costs could choke off an economic rebound. Click here for the latest market commentary from Briefing.com.
Stocks on the Move
Chrysler and Fiat finalized their alliance after the U.S. Supreme Court removed the deal's last remaining obstacle. The Supreme Court rejected creditors' objections late Tuesday, paving the way for the U.S. auto maker to emerge from bankruptcy.
Citigroup (C) said it has finalized an agreement with the U.S. government to swap common stock for up to $25 billion of preferred shares held by the Treasury. Citigroup's shares were up 4.11% by 12:00PM ET. Ameriprise (AMP) dropped 7.78% this morning after announcing plans to offer $900 million in common stock. Meanwhile, BlackRock (BLK) is nearing a deal to acquire Barclays Global Investors, which would make it the world's biggest money manager.
Real-estate services provider CB Richard Ellis (CBG) gave a cautious second-quarter outlook as it announced plans to sell $400 million in 10-year notes and $150 million in stock to repay debt. Shares were up 12.9% following news that hedge-fund operator Paulson & Co. will invest $100 million in the company.
Google's (GOOG) Chief Executive Eric Schmidt shrugged off Microsoft's (MSFT) new search engine, Bing, saying "We think search is really about comprehensiveness, freshness, scale and size of what we do. And it's difficult for them to copy that." Google's stock was down 1.31% by mid-day, while Microsoft's was up 1.18%.
Recovery hopes bolstered London's FTSE 100, which finished 1.2% stronger at 4,457.29. Asian markets were broadly lifted by a rally in commodity prices and more signs of economic recovery. Japan's Nikkei 225 closed 2.1% higher at 9,991.49, its highest close in eight months. In China, the Shanghai Composite index closed 1% higher, buoyed by reports that industrial production, due to be reported on Friday, rose by 8.9% in May from a year earlier, well ahead of forecasts. Shanghai's progress helped Hong Kong, where the Hang Seng closed 4% higher.
Rachel Haig does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.