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Stocks closed mixed with the broad market weighed down after the United Nations’ nuclear watchdog said Iran had failed to meet a deadline to stop nuclear enrichment, but with tech shares making a late comeback on upbeat news for several stocks. The Dow Jones industrial average slumped for a second session, amid rising oil prices, and a jump in Treasury bond yields.

Today, the Dow Jones industrial average closed down 52.39 or 0.41% to 12,686.02, while the broader S&P 500 closed down 1.25 or 0.09% to 1,456.38. The Nasdaq closed up 6.52 or 0.26% to 2,524.94, at a fresh six-year high for the third session in a row.

Market breadth was mixed. On the New York Stock Exchange, losers beat winners 17 to 14 on volume of 1.47 billion shares. On the Nasdaq, advancers topped decliners 16 to 13 on volume of 2.04 billion shares.

Technology shares rose, thanks to upbeat earnings from chip maker Analog Devices and the end of Cisco and Apple’s trademark dispute. A merger in the grocery sector had added to the market’s early strength. However, stocks were pressured by rising oil prices amid a surprise dip in weekly energy inventories and a U.N. report that Iran has missed the deadline to suspend nuclear activities. However, news that Iran is not complying with the United Nations was not particularly surprising, and the stock sell-off may just reflect investors getting a little antsy after the recent advance.

Stock of Whole Foods closed up $6.41 to $52.11, after stating that it will buy Wild Oats for around $565 million in cash. Stock of Wild Oats closed $2.69 to $18.41, in active trading. Whole Foods will pay $18.50 a share in cash - an 18% premium to the company’s closing share price on Wednesday.

Shares of Cisco closed up $0.02 to $27.40, and Apple Computers closed up $0.31 to $89.51, after reaching an agreement so that both can use the iPhone name. This agreement has been reached after Cisco sued the iPod maker for using it for a new multimedia phone.

Stock of Toll Brothers closed down $0.93 or 3.6% to $31.93, after reporting sharply lower fiscal first-quarter profit, reflecting the ongoing collapse of the housing market. It also lowered its fiscal 2007 forecast. It earned $54.3 million, down from $163.9 million in the year earlier quarter.

Stock of Microsoft closed up $0.04 to $29.39, after a U.S. federal jury ruled that it infringed on audio patents held by Alcatel-Lucent and should pay $1.52 billion in damages. Hares of Alcatel closed up $0.07 to $13.14. Microsoft said it plans to seek relief on the verdict as it is unsupported by the law or facts, and it may appeal.

U.S. light crude oil for April delivery rose 88 cents to settle at $60.95 a barrel on the New York Mercantile Exchange after the weekly oil inventories report showed a large drop in gasoline and oil inventories.

All the best,
Manuel Jesus-Backus
The Portfolio Crafter
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