Stocks Start Week With Rally

IndyMac (IMB Quote), a mortgage lender lost $184.2 million, or $2.27 a share, in the first quarter and warned that it won't achieve a profit until the plunge in housing prices eases up. Shares sank 10.5%.

HSBC (HBC Quote) was up 3.1%, however, after saying first-quarter earnings climbed from last year, thanks to its success in emerging markets such as Asia. That came even as the Britain-based bank wrote down $2.6 billion in assets and doubled its loan-impairment charges.

Away from financials, Sprint Nextel (S Quote) saw choppy trading after sharply widening its first-quarter loss to $505 million, or 18 cents a share, as it continued to lose subscribers. Stripping out one-time expenses, Sprint made 4 cents a share, or 2 cents better than expected, even as revenue fell short. Shares dropped 1.5%.

XM Satellite Radio (XMSR Quote) also lost more money in its latest quarter, missing the consensus target, but shares rose 4.2%.

XM's merger partner Sirius (SIRI Quote), which posted a narrowed first-quarter loss after the market closed, finished the regular session up 4.2% at $12.30. Recent late trading saw a further gain of 0.7%.

Meanwhile, confirmation came that Cablevision (CVC Quote) has agreed to pay Tribune Co. $650 million for the Long Island newspaper Newsday. Over the weekend, Rupert Murdoch's News Corp. (NWS Quote) retracted its own $580 million offer for the paper. Cablevision slipped 1.8%, and News Corp. ended 1.1% better.

Elsewhere, after Friday's market close FedEx (FDX Quote) said harsh economic conditions and climbing fuel prices have squeezed its bottom line, and the package-delivery outfit slashed its current-quarter earnings forecast. Shares finished nominally higher at $90.50.

Treasury prices were erasing early gains. The 10-year note and the 30-year bond were each losing 7/32 in price to yield 3.80% and 4.54%, respectively.

Markets abroad were mixed. In Asia, Tokyo's Nikkei 225 added 0.6% overnight. Hong Kong was closed. Among European exchanges, the FTSE 100 in London and the Paris Cac finished up roughly 0.3% apiece, and Germany's Xetra Dax climbed 0.5%.