This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Finish Mixed as Global Issues Weighed

NEW YORK ( TheStreet) -- The major U.S. stocks indices finished in mixed territory Monday as investors weighed more evidence of a cooling Chinese economy against expectations that Greece was set to receive final approval of a new bailout package.

The Dow Jones Industrial Average closed higher by 37.7 points, or 0.3%, to 12,960. The S&P 500 was up 0.2 points, or 0.02%, to 1371 and Nasdaq was down 4.7 points, or 0.2%, to 2984, weighed down by Yahoo! (YHOO), Oracle (ORCL) and Research In Motion (RIMM).

With no U.S. economic data releases on Monday, the focus turned to news abroad, including Greece's progress on getting a second bailout. Last week, the country successfully completed its debt swap with private investors, a deal that was subsequently declared as a "credit event" triggering payouts related to credit default swaps. Euro leaders Monday are expected to meet in Brussels in order to sign off on $170 billion worth of aid for Greece.

China reported slower than expected export growth in the last month. The country's trade deficit hit $31.5 billion in February, its largest trade deficit since 1989, as exports to debt-troubled Europe weakened. Exports rose at 18.4%; however, they were 23.6% lower than January's levels.

The data, together with recent reports on factory output and retail sales, suggest slowing growth in China. On the upside, Japan reported that its machinery orders rebounded in January, suggesting future growth momentum.

European markets closed mixed, although Germany's DAX eked out a 0.3% gain and London's FTSE posted a 0.05% gain. Japan's Nikkei Average closed down 0.4% on Monday and Hong Kong's Hang Seng finished up 0.23%.

The Federal Reserve will make an announcement later this week on monetary policy, which though not expected to change will nevertheless be subject to intense scrutiny by investors watching for clues of some kind of bond buying later this year. The week is packed full of economic data, including a regional manufacturing report on Thursday and a consumer sentiment reading on Friday.

Also up this week are results of the latest bank stress tests. "The market needs clearer direction, which may come with more economic data ... [but] if we see something with the financial sector, that could spook markets and we could see a pullback," said Mark Martiak, senior wealth strategist with Premier Financial Advisors.

"Be prepared for a slight pullback and definitely more volatility. ... The steep decline last week prepared us for it," he added, referring to last Tuesday's selloff in reaction to China's announcement that it will target a lower 7.5% GDP growth for 2012.

Stocks finished slightly higher Friday despite the ruling from the International Swaps and Derivatives Association on Greece that the nation was technically in default, which initiated credit default swaps.

The U.S. jobs report Friday showed a third consecutive month of plus 200,000 job additions in February. For the week, the Dow fell 0.4%, while the S&P 500 and Nasdaq edged marginally higher.

In corporate news, Chinese online video giant (YOKU) announced that it is buying peer Tudou (TUDO) in an all-stock deal valued at more than $1 billion. The combined entity will be called Youku Tudou and become a leading online video company in the world's largest Internet market. Tudou reported a net loss of 511.2 million yuan ($81.2 million) last year, while Youku on Monday posted a net loss of 172.1 million yuan. Youku shares jumped 27.4% to $31.85 while Tudou shares surged 156.5% to $39.48.

FuelCell Energy (FCEL) reported a first-quarter loss of 5 cents a share compared with the loss of 6 cents a share expected by analysts. Shares gained 7.3% to $1.61.

Carnival (CCL) shares rose 1% to $30.88 after being upgraded to outperform from underperform by Exane BNP Paribas. Shares have been hurt of late by its cruise ship accidents.

PepsiCo (PEP - Get Report) on Monday named former senior Wal-Mart (WMT - Get Report) executive Brian Cornell to head Pepsi's largest and most profitable unit, the Americas-wide food division. PepsiCo has also named longtime company executive John Compton to the new position of president. It's viewed that the appointments position both men, and European operations chief Zein Abdalla, as the top internal candidates to succeed CEO Indra Nooyi, who has been getting heat from investors. Shares added 1.3% to $63.94.

Japan's Asahi Kasei agreed to buy Zoll Medical (ZOLL), the medical equipment maker, for $2.21 billion.

Asahi Kasei, which makes chemicals and construction materials, agreed to buy Zoll for $93 a share in a tender offer. The transaction price is a premium of 29.6% over Zoll's average closing stock price over the last 30 trading days. Shares of Zoll surged 23.8% to $92.94.

April oil futures settled lower by $1.06 to $106.34. In other commodities, April gold futures finished down $11.70 to $1,699.80 an ounce.

The dollar index was 0.19% lower. The benchmark 10-year Treasury was flat with a yield of 2.03%.

-- Written by Andrea Tse and Chao Deng in New York.

>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to .

>To submit a news tip, send an email to:
Copyright 2011 Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
PEP $98.49 0.00%
WMT $66.18 0.00%
AAPL $93.99 0.00%
FB $102.01 0.00%
GOOG $682.40 0.00%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs