This Day On The Street
Continue to site right-arrow
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 Under $10 with 50-100% upside potential - 14 days FREE!

U.S. Markets' Six-Day Rally Ends Not With a Bang, but a Whimper

Stocks in this article: ^DJI ^GSPC ^IXIC ORCL MCRS WEC TEG GE MU

NEW YORK ( TheStreet) -- U.S. stock markets had a quiet beginning to the week, fresh off a multi-day rally to record highs heading into the weekend. Major indices were slightly lower, little moved by corporate merger news and a second-straight month of gains in existing home sales.

While the Dow Jones Industrial Average slipped 0.06% to 16,937.26, the S&P 500 and Nasdaq closed flat at 1,962.61 and 4,368.68, respectively. The S&P 500 closed higher 1.38% higher last week and the Dow inched closer toward 17,000, driven by the Federal Reserve's reaffirmation of supportive monetary policy but restrained from further upside by the continue conflict in Iraq. 

Sales of previously owned homes in May rose 4.9% to a seasonally adjusted annual rate of 4.89 million homes. The monthly gain was the fastest since August 2011, but even with the increase, sales were still 5% below the pace in May 2013.

U.S. Secretary of State John Kerry arrived in Iraq on Monday to meet with Prime Minister Nuri al-Maliki as radical Sunni militants seized control of one city after another in their violent advance toward Baghdad. There have been calls for al-Maliki to resign from his post amid growing doubt that he'll be able to form a new, inclusive government to ease the crisis in Iraq.

Though markets have been constrained by bubbling tensions in the Middle East, they are yet to be knocked off course. In a report, Wells Fargo chief macro strategist Gary Thayer explained, "Oil prices have increased only modestly since the Iraqi turmoil returned to the headlines earlier this month. That is probably why investors focused more on the positive news from the Fed than the negative news out of Iraq."

He continued, "If oil prices continue to rise and eventually increase significantly, investors are likely to turn negative, and the stock market could give back some of its recent gains."

Brent crude oil fell 84 cents to $113.97 bbl on Monday, slightly higher than an intraday decline as low as $113.86 earlier in the day. 

Headlining corporate news, Oracle (ORCL) agreed to purchase Micros Systems (MCRS) for $5.3 billion, or $68 a share, in cash. Micros shares added 3.4% to $67.98.

Wisconsin Energy (WEC) agreed to buy Integrys Energy Group (TEG) for $5.8 billion in cash and stock. Wisconsin Energy shares slid 3.5% to $45.27, while Integrys surged 12.1% to $68.35.

The final obstacle to General Electric's (GE) $17 billion takeover of Alstom's power division has been overcome after the French government agreed to terms with the French engineering company's main shareholder. GE fell 1.1% to $26.68.

Reporting after the bell, Micron Technology (MU) earned 79 cents a share and generated sales of $3.98 billion in its third quarter. Analysts expected earnings of 70 cents a share and revenue of $3.89 billion.

--By Andrea Tse and Keris Alison Lahiff in New York

June 23 Premarket Briefing: 10 Things You Should Know

European Stocks Sink on Weak Eurozone Data

Just a Regular Day of Record Highs, No Big Deal

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs