Market Minute: Investors Eye May Gains; Rival Retailers to Merge?

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Sell in May and go away? No way! And two leading retailers consider a merger, briefly. Those and more are what's in the news on Wall Street this Friday.

The Dow industrials (^DJI) added 21 points yesterday, the S&P 500 (^GSPC) gained 6 and the Nasdaq (^IXIC) rose 23 points.

During the past few years, May has been a disaster for investors. Last May, the Dow tumbled 820 points. In 2011 it lost 240. And in 2010, it slid 872 points. But heading into today's session, the Dow is up 484 points this month. Unless all of that is wiped out today, the Dow will post its seventh straight monthly gain.

Neiman Marcus reportedly considered but rejected an offer to merge with rival Saks
Alamy
Luxury retailer Neiman Marcus reportedly considered but rejected an offer to merge with rival Saks (SKS). Both companies are said to be up for sale. The Wall Street Journal says the buyout firm KKR & Co. (KKR) was interested in investing in the combined company.

Krispy Kreme Doughnuts (KKD) served up some tasty earnings. Its net jumped 33 percent and the company raised its forecast for the full year.

The "Hunger Games" and "Twilight" movies continue to deliver big returns for Lions Gate Entertainment (LGF). It swing to a bigger than expected profit, and revenue rose 22 percent.

And you don't have to guess what will happen to the apparel maker Guess (GES) today. It's set to jump on strong earnings and an upbeat forecast.

But the internet security firm Palo Alto Networks (PANW) could be feeling a bit insecure today. Its shares are set to tumble after the company posted a loss, and revenue came in short of expectations.

A special committee of Dell's (DELL) board is recommending that shareholders approve CEO Michael Dell's plan to take the company private at a meeting in July. A group led by Carl Icahn has a rival bid on the table.

And the insurance giant American International Group (AIG) has dropped a case against the Federal Reserve over whether the company had given away its right to sue over its massive losses on mortgage backed securities.

Check back after the market closes Friday for the new Daily Finance closing bell report.

-Produced by Drew Trachtenberg


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6 Comments

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jurgenjoshua

DON'T DO IT!!!!!

May 31 2013 at 8:05 PM Report abuse rate up rate down Reply
jurgenjoshua

DON'T DO IT!!!!!

May 31 2013 at 8:05 PM Report abuse rate up rate down Reply
Iselin007

About 12 years ago I was at Nieman Marcus their merchandise was very expensively priced such as $5000 leather jackets and $100.00 + plaid shirts. The store was in the Short Hills Mall where women paraded around in black outfits and pearls etc.

May 31 2013 at 6:28 PM Report abuse rate up rate down Reply
hmkyardley

The days of Saks and Neiman Marcus as major retailers are over. I stopped shopping at these stores years ago. They don't have anything special I can't find elsewhere at a better price. Birds of a feather.....they should have merged. Oh well!

May 31 2013 at 10:05 AM Report abuse +1 rate up rate down Reply
2 replies to hmkyardley's comment
setanta54s_back

it's because their buyers are from the
federation of buyers,so basically THE SAME MERCHANDISE among them all.

like the dummies touting blOOmingdales ???? same cr@p'sover @macys and costs LESS BECAUSE IT IS MACYS.

May 31 2013 at 3:38 PM Report abuse rate up rate down Reply
Iselin007

Surely the merchandise was produced at low wages like any other import.

May 31 2013 at 6:31 PM Report abuse rate up rate down Reply