Traders-Blog.com

U.S. stocks fell to their lowest in at least two months, due to an increase in energy prices. Besides, the NCR Corp. had the biggest one-day loss since its 1996 split from AT&T Corp., after Chief Executive Officer Mark Hurd resigned. The Dow fell 79.95 points to close at 10,405.70. Besides, the Nasdaq and the S&P fell today. The Nasdaq closed at 1,973.88, after falling 18.64 points, while the S&P fell 8.92 points to close at 1,165.36.

Hewlett-Packard Co., the world’s second personal computer maker, named Mark Hurd Chief Executive to replaced the ousted Carly Fiorina. Word of the decision sent NCR shares plunging 17 percent, and Hewlett-Packard up 9 percent. Hurd will be in charge with making decisions about where to take H-P, which has Dell and IBM as its big competitors. Hurd worked for NCR for 25 years, taking the chief executive position two years ago. During his time as CEO, NCR’s stock rose four-fold.

Among the Dow components, a 4.7 percent slump in Caterpillar shares weighted heavily. Also, shares of Pfizer, DuPont, Alcoa, Honeywell, and McDonalds dragged the Dow lower. Meanwhile, American International Group rose 2.1 percent due to the appointment of a new chairman and remarks from New York Attorney General Eliot Spitzer that his investigations into the insurer will be resolved soon.

MCI Inc. accepted a $7.64 billion takeover offer from Verizon Communications Inc., and rejected a higher bid of $8.45 billion from Qwest Communications International Inc. However, Qwest Chief Executive Officer Richard Notebaert may respond to the offer by increasing his bid to as high as $8.95 billion. Verizon said it will pay $23.50 in cash and stock, compared with Qwest’s $26 a share.

Crude for May delivery edged up 18 cents to $54.23 a barrel. The dollar rally against European currencies stalled as the British pound gained after U.K bank Barclays said that it sees an interest rate hike next week in Britain.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter