Traders-Blog.com

Today, U.S. stocks ended mixed. The Dow fell 6.72 points, to close at 10,626.35. However, both the Nasdaq and the S&P rose. The Nasdaq rose 0.67 points, to close at 2,016.42, while the S&P closed at 1,190.21, after rising 2.14 points.

Morgan Stanley, one of the world’s leading securities firm, reported earnings that exceeded analysts’ expectations. Its fiscal first-quarter net income rose 20 percent to $1.47 billion, which is the highest gain in five years. Besides, Goldman Sachs Group Inc. climbed 17 percent to a record $1.51 billion. Morgan Stanley, Goldman Sachs, and Lehman Brothers Holdings Inc., earned a combined $4.2 billion in the first quarter, which represents a 19 percent increase from last year.

Toys “R” Us Inc. agreed to be acquired by a private investment group for $6.6 billion. The investment group, which includes affiliates of Kohlberg Kravis Roberts & Co., Bain Capital Partners LLC and Vornado Realty Trust will pay $26.75 a share, plus an undisclosed amount of the retailer’s debt. The deal is expected to close by July, pending regulatory, and shareholders’ approval. Shares of Toys “R” Us finished the session at $26, rising $1.23.

Qwest Communications International raised its takeover bid for MCI Inc. to $8.45 billion, adding pressure on competitor Verizon Communications Inc. to increase a competing offer. Qwest said that it will pay $15.50 in stock and $10.50 in cash for each MCI share. Now, Verizon will have only five days to make a counter offer, should MCI decide that Qwest’s plan is superior. If MCI agrees to be bought by another company, Verizon would earn a $200 million fee from MCI for breaking the sale contract. Shares of MCI fell 50 cents to $23.25, Verizon fell 20 cents to $35.14, while Qwest dropped 13 cents to $3.69.

The U.S. light crude oil for April delivery fell 6 cents to close at $56.40 a barrel, after hitting a record high of $57.60 earlier in the afternoon. According to Mark Bryant, senior vice president at Brean Murray & Co., there is a danger of oil becoming a self-fulfilling prophecy of sorts. This means that at current levels, oil does not pose the same kind of threat to the economy it did in past decades.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter