Stocks Fade to Mixed Close After Early Rally

Staying in the tech space, The Wall Street Journal reported that merger talks between Microsoft (MSFT - Cramer's Take - Stockpickr) and Yahoo! (YHOO - Cramer's Take - Stockpickr) have intensified several days after the uneventful passing of Microsoft's stated deadline for Yahoo! to accept its stock-and-cash takeout bid. Further, a blog on The New York Times' Web site said Microsoft has upped its offer by "several dollars," citing anonymous sources.

Microsoft, which has been trying to pressure Yahoo! into accepting its offer for three months, had warned the Internet-portal operator that it would go hostile if the offer wasn't accepted by that deadline. Yahoo!, however, continued insisting that the deal undervalues the company. Earlier today, the Journal had reported that Microsoft could appeal directly to Yahoo! shareholders as early as today.

The paper also said Yahoo! could, within a week, announce an agreement to carry search ads from Google (GOOG - Cramer's Take - Stockpickr) -- seen as a possible strategic alternative to getting bought out -- according to people familiar with the matter. Microsoft shares were off 0.5% as Yahoo! jumped 6.9%.

Elsewhere, Countrywide (CFC - Cramer's Take - Stockpickr) was a late laggard after Bank of America (BAC - Cramer's Take - Stockpickr) announced that it might not assume Countrywide's considerable debt as part of its agreement to buy out the mortgage lender. In a regulatory filing, BofA said it "has made no determination in this regard, and there is no assurance that any of such debt would be redeemed, assumed, or guaranteed."

Standard & Poor's subsequently cut Countrywide's credit rating to junk status. The stock closed down 1.2%, and BofA ended 1% higher.

Back in earnings, Dow component Chevron (CVX - Cramer's Take - Stockpickr) joined its oil-and-gas brethren in reaping rich profits from the recent spike in crude futures, and first-quarter income jumped 10% at $5.17 billion. Shares were up 40 cents at $95.32.

Viacom (VIA.B - Cramer's Take - Stockpickr), which owns MTV and other media properties, said first-quarter revenue was up 15% to $3.12 billion, partly thanks to strong sales of the Rock Band music-video game. The company's adjusted profit of 44 cents a share topped analyst predictions. Still, after a higher start, shares finished down 1.2%.

Insurer MetLife (MET - Cramer's Take - Stockpickr) ticked up 23 cents to $62.17 after operating earnings topped the first-quarter consensus, even as shriveling investments dragged its overall profit down 37%.

Also, engineering-and-construction concern KBR (KBR - Cramer's Take - Stockpickr) more than tripled its first-quarter earnings to $98 million, or 58 cents a share, handily beating the 34-cent analyst consensus from Thomson Financial. Revenue surged to a better-than-anticipated $2.52 billion. The stock advanced 5.9%.

Wynn Resorts (WYNN - Cramer's Take - Stockpickr) saw choppy trading on mixed first-quarter results. The casino-resort operator posted a 20% profit drop, falling a penny short of per-share analyst projections, but revenue was better than expected. Shares spent most of the morning in the green, but ended off 16 cents at $108.03.