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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14 Comments

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Iselin007

The stocks are worth less than they were on October 1987

June 20 2013 at 4:27 PM Report abuse rate up rate down Reply
kolblh

That bail-out balloon is leaking.

June 20 2013 at 4:27 PM Report abuse rate up rate down Reply
metusmetu

Stocks are down well over 500 points last two days! Yeah Buddy! The economy is sure picking up!!!
! LOL!!!

June 20 2013 at 3:49 PM Report abuse +3 rate up rate down Reply
crownja5957

blame it on bush after 5 years he could have done something

June 20 2013 at 3:33 PM Report abuse rate up rate down Reply
SPQR

the traders are taking 1 trillion dollars of our money.....watch it go away real fast. Almost makes you think that Bernacke master minded all this to make his friends rich

June 20 2013 at 3:06 PM Report abuse +4 rate up rate down Reply
1 reply to SPQR's comment
kolblh

Think? Know is more like it.

June 20 2013 at 4:28 PM Report abuse +1 rate up rate down Reply
tojace

What a bunch of Wall Street pucks; I swear they smell a fart and they bump

June 20 2013 at 3:03 PM Report abuse +1 rate up rate down Reply
lpi2007

FOR ALL YOU LOSERS OUT THERE. HAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHHA

June 20 2013 at 3:02 PM Report abuse rate up rate down Reply
lacabrera

They are not going to get more free stuff ,time to re-adjust the numbers !!

June 20 2013 at 2:52 PM Report abuse rate up rate down Reply
blackburndh

Leave it to greedy Wall Street. They are making millions and still want the Feds to give them MORE. Grow up, you spoiled, brats and thieves.

June 20 2013 at 1:45 PM Report abuse +8 rate up rate down Reply
Big John

The free money for corporations and banks is going to end and they may have to make it on their own wilthout government or tax payer help. I think that is called capitalism.

June 20 2013 at 1:09 PM Report abuse +5 rate up rate down Reply
1 reply to Big John's comment
gymgorilla2

Big John, you are so right. The free money train is in the process of derailment. Just when Wall Street and Bankers thought the train was unstoppable. However, this is also going to impact the honest investors, small businesses and hard working people's 401K, and that is definitely the tragedy of it all.

June 20 2013 at 2:06 PM Report abuse +1 rate up rate down Reply