Market Minute: Stocks Point Lower; Microsoft's Nokia Deal Falters

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Dividend-paying stocks are under pressure, and Microsoft looks to get back in the phone game. Those and more are what's making business news Thursday.

A Bernanke-inspired sell-off sent the Dow industrials (^DJI) down 206 points yesterday. It's the seventh straight triple digit move for the Dow, and we're likely to see more selling this morning. The S&P 500 (^GSPC) lost 22 points and the Nasdaq (^IXIC) slid nearly 39.
microsoft nokia smartphones windows stocks technology federal reserve
Spencer Platt/Getty Images

The yield on the 10-year Treasury note shot up above 2.4 percent -- its highest level in nearly two years. That means utility, phone and other high-yielding stocks could come under more pressure.

Microsoft (MSFT) was reportedly near a deal to acquire Nokia's device business, but The Wall Street Journal says those discussions have cooled. Both companies have faltered in the smartphone business, falling far behind Apple (AAPL) and Samsung.

PC-maker Lenovo also wants to expand its smartphone operations. The Journal reports the Chinese company wants to start selling phones in the U.S. within a year.

Chip-maker Micron Technology (MU) posted a better than expected quarterly profit, reversing a big year ago loss. Micron's stock has more than doubled in value this year.

Red Hat (RHT) also topped expectations. The company, which provides open source software, reported strong revenue growth.

But Rite Aid (RAD) is set to fall despite posting a profit in line with expectations. Sales fell from a year ago.

Videogame-retailer GameStop (GME) is set to rally after Microsoft opened up its Xbox One console to use any disc based game. The Xbox One is due out later this year.

But discount retailer Five Below (FIVE) is headed lower. It's planning a secondary offering of stock, which dilutes the value of existing shares.

And George Zimmer, the chairman, co-founder and public face of Men's Warehouse (MW), has been ousted. The company didn't say why he was let go after 40 years with the clothing store chain. Zimmer starred in the company's commercials, using the catch phrase: "You're going to like the way you look. I guarantee it."

-Produced by Drew Trachtenberg


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