NEW YORK (
) -- Here are the top stock market headlines for the morning of Tuesday, June 1, 2010.
Tuesday's Early Headlines
- China Manufacturing Data Shows Growth Slowing -- Steps the Chinese government have taken to slow economic growth in the country and prevent overheating appear to be working, according to two separate reports on manufacturing activity. China's Federation of Logistics and Purchasing index fell to a reading of 53.9 from 55.7 in April, although the report still showed that the manufacturing sector continued to expand. Meanwhile, the HSBC China Manufacturing Purchasing Managers Index fell to a reading of 52.7 in May from a revised 55.2 the month prior.
- ISM, Construction Spending Data Due at 10 a.m. -- The Institute for Supply Management will post the May reading for its manufacturing index at 10 a.m. ET, with economists forecasting a slight decline to 59.4 from 60.4 in April. Any reading over 50 represents expansion, rather than contraction. At the same time, the Census Bureau will release construction spending data for April, which should rise 0.1% after a 0.2% increase in March.
- AIG Rejects Price Cut of AIA Sale to Prudential PLC -- American International Group (AIG) - Get Report said it will not consider revisions to the $35.5 billion sale of its AIA Asian unit to Prudential PLC (PUK) - Get Report. "Aafter careful consideration, the company will adhere to the original terms of its previously announced agreement with Prudential," AIG said in a statement. Prudential PLC was reportedly working to negotiate the price of the deal to below $30 billion.
- Hewlett-Packard to Cut 9,000 Jobs -- Hewlett-Packard (HPQ) - Get Report said it will cut about 9,000 jobs and take $1 billion in charges over several years as it consolidates parts of its Enterprise Services unit to create a "modernized and automated IT infrastructure." H-P said the consolidation should generate annualized gross savings of approximately $1 billion and net savings after reinvestment in a range between $500 million and $700 million.
- Covidien Buys ev3 for $2.6 Billion -- Covidien (COV) announced an agreement Tuesday to buy all of ev3's( EVVV) outstanding shares for $2.6 billion, or $22.50 a share, in cash. The transaction will take the form of an all-cash tender offer by a wholly-owned subsidiary of Covidien, followed by a second-step merger expected to be completed by July 31.
- BP Shares Plummet After Top-Kill Solution Fails -- BP (BP) - Get Report shares were trading down about 13% in London after the oil company said over the weekend the "top-kill" procedure to plug the oil leak in the Gulf of Mexico had failed. BP said Tuesday it now plans to place a new containment valve over the blown-out well this week. BP said it will begin cutting through the riser that is spewing oil and gas into the Gulf as soon as Wednesday, after which it will attempt to place the cap-like containment device that would siphon the mixture to the surface. BP shares trading in New York were down nearly 14% in Tuesday's premarket session.
- Google Reportedly Phasing Out Windows Use -- Google (GOOG) - Get Report is phasing out the internal use of Microsoft's (MSFT) - Get Report Windows operating system because of security concerns, the Financial Times reports, citing several Google employees. The directive by the Internet search giant to move to other operating systems began in January after Google's Chinese operations were hacked the FT says. "Many people have been moved away from (Windows) PCs, mostly towards Mac OS, following the China hacking attacks," a Google employee told the newspaper.
- Apple Sells 2 Million iPads in 60 Days -- Apple (AAPL) - Get Report said Monday that iPadsales have topped two million in less than 60 days since its launch on April 3. "Customers around the world are experiencing the magic of iPad, and seem to be loving it as much as we do," Apple CEO Steve Jobs said in a statement. On Friday, the iPad tablet device was made available to customers in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland, and the U.K.
-- Written by Robert Holmes in Boston
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