Stocks ended with broad-based losses after trading in negative territory for most of the session. Briefing.com reported that part of this session's weakness came from concerns that rising oil prices and higher borrowing costs associated with rising Treasury yields could stymie an economic rebound. Financials saw the worst loss by declining 1.6%, while consumer discretionary stocks slid 1.0%. Investors continued to look for signs that economic growth is actually taking root and were uninspired by comments from the Fed's Beige Book. 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 closed up 2.05%. Ameriprise (AMP) dropped 7.26% after announcing plans to offer $900 million in common stock. Meanwhile, BlackRock (BLK) neared 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 ended up 13.64% 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 ended down .69%, while Microsoft's finished up 2.12%.
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.