Stocks end modestly lower as energy slides
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And Chrysler, managed by Italian car maker Fiat, reported a profit of $116 million, it's first gain since emerging from bankruptcy two years ago. Chrysler lost $197 million a year ago. Revenue rose to $13.1 billion in the first quarter.
In merger and acquisitions news, Teva Pharmaceutical gained after news the pharmaceutical firm would buy Cephalon, a specialty drugmaker for $81.50 a share or about $6.2 billion. Cephalon, which Valeant Pharmaceuticals had sought to acquire in a hostile bid, also gained. Meanwhile, S&P Equity raised its price target on Cephalon from $76 to $82.
Nasdaq OMX shares were halted until 2:30 p.m. after the firm and IntercontinentalExchange announced that their boards have approved their intent to commence an exchange offer to acquire all of the outstanding shares of NYSE Euronext common stock in a cash and stock transaction valued at approximately $11 billion. Shares traded flat after they reopened for trading.
Meanwhile, Ralcorp said its board of directors rejected the unsolicited proposal it received from a third party in March, after a media report that ConAgra had bid for the private-label food maker.
Research In Motion's announcement of two upgraded BlackBerry Bold smartphones didn't do much to reverse the slide in the company's stock, which fell sharply last week after RIM delivered disappointing earnings results.
TiVo shares jumped after Dish Network and EchoStar said it will pay the digital video recorder firm $500 million to settle a patent infringement lawsuit, capping a long and costly legal battle. Dish Network also reported its first quarter profits more than doubled.
Meanwhile, Sony shares rallied after the Japanese technology firm said it plans to resume some services on its PlayStation Network this week following the theft of personal information belonging to 78 million users.
Alcoa gained after the aluminum producer got a boost from Goldman Sachs, which upgraded the firm to "buy" from "neutral." The brokerage also raised its price target on the stock to $22 a share from $17.
Apple fell a day before the Nasdaq 100 is rebalanced, slashing Apple's weighting to 12 percent from about 20. Separately, an analyst at Canaccord Genuity determined the maker of the iPhone earned 50 percent of all smartphone industry operating profits in the first quarter, up from 43 percent a year earlier.
Volume on the consolidated tape of the New York Stock Exchange was 3.9 billion shares, while 935 million changed hands on the NYSE floor.
Over the weekend, Warren Buffett told Berkshire Hathaway shareholders he made "a big mistake" by not questioning David Sokol's "inexplicable and inexcusable" trades in Lubrizol, which violated the company's ethics code.
U.S. crude initially slid more than 1 percent after the news that Bin Laden was killed, but prices eventually stabilized. London Brent crude fell slightly to close at $125.12 a barrel, while U.S. light crude also fell slightly to $113.52.
In the day's economic news, the Institute for Supply Management's April gauge of manufacturing fell less than expected to 60.4 from 61.2 in March. The prices paid index within the report rose to 85.5 from 85, the highest level in nearly three years.
Also construction spending gained 1.4 percent in April to an annual rate of $768.9 billion, according to the Commerce Department, widely exceeding expectations.
Asian stocks rallied, with the Nikkei briefly jumping above 10,000 points, while European shares traded higher. Various markets in Asia and Europe are closed. Financial markets in China, Hong Kong, Singapore, Malaysia and Thailand are all shut for public holidays while the London Stock Exchange is also closed.