Traders-Blog.com

Today, the Dow and the S&P hit their lowest levels of 2005. U.S. stocks declined after economic reports showed that inflation may rise and hurt the outlook for the economy. The Dow fell 115.05 points, to close at 10,012.36. Besides, both the Nasdaq and the S&P posted losses. The Nasdaq fell 18.60 points, to close at 1,913.76, while the S&P closed at 1,137.50, after falling 15.28 points.

According to the Labor Department, the consumer price index rose a larger-than-expected 0.6 percent in March after a 0.4 percent rise. During the Fed’s last meeting in March 22, officials saw higher risks of inflation. It was reported that a drop in the value of the dollar, higher costs for building materials, and higher prices in energy contributed to higher costs.

The New York Stock Exchange announced its plan to merge with its electronic rival Archipelago Holdings and become public. The deal, which is subject to regulatory approval, is expected to close by the first quarter of 2006. Although there is not specific value in the deal yet, Archipelago’s ArcaEx electronic communication network has a stock market value of $885 million.

Ebay Inc., the biggest auction site, posted a better-than-expected 28 percent increase in quarterly net profits. However, forecasts for future profits are below the estimates of Wall Street. Ebay forecasted second-quarter net earnings of 16 cents per share, which is lower than analysts’ estimates. Still, revenue rose to $1.03 billion from $756.2 million last year. Shares of Ebay ended up 94 cents, or nearly 3 percent, at $33. 11.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter