Stocks Wrap Up Day Mixed

An afternoon rally led by the financial sector pulled the market off its session lows. Gregg Greenberg discusses the day in The Real Story video above.
Author:
Publish date:

Updated from 4:23 p.m. EDT

Stocks in New York closed mixed Monday as an afternoon rally led by the financial sector pulled the market off its session lows and helped overcome the latest round of

General Motors

(GM) - Get Report

bankruptcy angst.

The

Dow Jones Industrial Average

, down more than 100 points earlier in the day, ended with a loss of 25.57 points, or 0.3%, to 8057.81, while the

S&P 500

was up 2.17 points, or 0.3%, to 858.73. The

Nasdaq

rose 0.77 points, or 0.05%, to 1653.31.

Financials propped up the major indices ahead of a string of

bank earnings

.

Goldman Sachs

(GS) - Get Report

, due to report before the open Tuesday, instead

issued its numbers early

. For the first quarter, the company had net revenue of $9.43 billion and earnings of $1.81 billion. Goldman also said it plans to sell $5 billion of stock to the public. Its shares added 4.7% in the regular session.

Image placeholder title

JP Morgan Chase

(JPM) - Get Report

will report on Thursday, followed by

Citigroup

(C) - Get Report

on Friday and

Bank of America

(BAC) - Get Report

next Monday.

Bank of America rose 15.4% to $11.02, and Citi surged 25% to $3.80, leading the Dow.

GM's shares, however, found little relief. The stock

sank 16.2% to $1.71

after

The New York Times

reported that the U.S. Treasury is directing the struggling automaker to lay the groundwork for a

bankruptcy filing

by June 1. The move is designed to prepare the company should it be unable to get needed concessions from the United Auto Workers union and reach an agreement with bondholders.

"It's not a surprise," says Quincy Krosby, chief investment strategist at The Hartford, of the GM development. "But right now you have a market that is fairly overbought, and it's the official start of earnings season, so it's probably a market that has a reason to take profits."

The recent rally has left nearly 85% of the stocks on the S&P 500 above their respective 50-day moving averages, or "very overbought," Jeffrey Saut, chief investment strategist at Raymond James, wrote in a research report. "Therefore, just as we were aggressively bullish five weeks ago today on

CNBC

, we are now aggressively cautious thinking the envisioned 'buying stampede' is long of tooth."

Earnings season is about to be in full swing, and already preliminary reports have been coming in. Last week,

Boeing

(BA) - Get Report

and

Chevron

(CVX) - Get Report

, tempered expectations with dim preliminary outlooks for the first quarter. Shares of those stocks were lower by 5.1% and 1.8%, respectively.

On the other hand,

Wells Fargo

(WFC) - Get Report

said it expected its results to be well ahead of Wall Street expectations, sending a positive jolt through the major indices in the final session before the holiday. Shares were up 0.3% on Monday.

Microsoft

(MSFT) - Get Report

and

Yahoo!

(YHOO)

were making news away from earnings, as the companies have resumed their talks about search and advertising partnerships, according to a

Wall Street Journal

report. The report launched Yahoo! shares 7.1% higher to $14.42. Microsoft shares edged 0.4% lower to $19.59.

Another stock on the rise was

MGM Mirage

(MGM) - Get Report

, which added 17.9% to $6.25. Dubai World, MGM's partner in the multibillion-dollar Las Vegas City Center project, has proposed a plan that would fund the development through its completion, according to a

Journal

report on Friday.

In other news, prescription benefits manager

Express Scripts

(ESRX)

rose 15.5% to $56.81 after announcing that it will buy health insurer

WellPoint's

(WLP)

NextRX pharmaceutical benefit management divisions for just under $4.68 billion in cash and stock. WellPoint shares were also on the rise, adding 8% to $43.58.

Meanwhile,

eBay

(EBAY) - Get Report

will buy a 34.21%

stake

in South Korean online marketplace

Gmarket

(GMKT)

from Interpark Corp. and its chairman for $413 million, according to a published report. Gmarket shares added almost 6% to $19.20, while eBay shares declined 2.6% to $14.63.

Also,

HSBC

(HBC)

is seeking to raise about $3.95 billion through

the sale

of three of its biggest office buildings, according to the U.K.'s

Sunday Times

. Shares were off by 1.1% at $34.65.

As for commodities, crude oil fell $1.25 to settle at $50.05 a barrel. Gold rose $12.50 to $895.80 an ounce.

The International Energy Agency cut its 2009 world oil demand forecast by 1 million barrels a day on Friday and said the tough economic conditions could further pressure consumption.

The dollar was recently strengthening slightly vs. the yen, but weaker against the euro and pound. Longer-dated Treasuries were rising. The 10-year was adding 18/32 to yield 2.9%, and the 30-year was gaining 28/32 and yielding 3.7%.

TheStreet.com Ratings, recently cited for Best Stock Selection from October 2007 through February 2009 , is an independent research provider that combines fundamental and technical analysis to offer investors tremendous value in volatile times. To see how your portfolio can use this research, click here now!