After Market: Ukraine Strikes Back, Investors Duck for Cover

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Escalating violence in Ukraine and a warning from Russian President Vladimir Putin made investors wary heading into the weekend. That news Friday overshadowed a surprisingly strong report showing the economy created more jobs in April than it had in any month in more than two years.

On balance, though, the declines were small. The Dow Jones industrial average (^DJI) fell 46 points less than 0.3 percent, while the Standard & Poor's 500 index (^GPSC) and the Nasdaq composite (^IXIC) each lost around 0.1 percent -- 2 points and 3 points, respectively.

Merck (MRK) was one of the big losers among the blue chips, down 2½ percent after stopping a clinical trial of a drug to treat ovarian cancer because it failed to live up to expectations.

Merck's partner in the research, Endocyte (ECYT), got clobbered. It lost 62 percent of its value on the news.

Staying with pharmaceuticals, Pfizer (PFE) lost more than 1 percent on word that Its sweetened, $106 billion offer for AstraZeneca (AZN) had been rejected. The British drug maker said the bid "substantially" undervalues the company.

Biotechs also had rough day. Gilead (GILD) and Regeneron (REGN) both lost about 2 percent, and Pharmacyclics (PCYC) dropped 7½ percent.

As for earnings, Wynn Resorts (WYNN) was a big winner. The stock gained 7 percent today and it's now up more than 60 percent over the past year. The company posted strong revenue from its casino operations in Macau.

Carpet maker Mohawk Industries (MHK) gained 6 percent as net topped expectations.

And Nutrisystems (NTRI) rose 8 percent, and the stock has nearly doubled in price from a year ago despite some weakness lately. It's been a good week for weight loss companies. Weight Watchers (WTW) surged on strong earnings Thursday.

On the downside:

  • Chevron (CVX), the nation's second largest oil company, edged lower as earnings and production fell.
  • LinkedIn (LNKD) slid 8 percent. It swung to a loss in the latest quarter from a profit a year ago.
  • Expedia (EXPE) dropped 3½ percent despite beating expectations and reporting a big jump in bookings.
  • Kraft Foods (KRFT) fell 1 percent.
  • And Madison Square Garden (MSG) lost 6½ percent.


What to Watch Monday:

  • The Institute for Supply Management releases its service sector index for April at 10 a.m. Eastern time.
These major companies are due to report quarterly financial results:
  • American International Group (AIG)
  • Anadarko Petroleum (APC)
  • Orbitz Worldwide (OWW)
  • Pfizer (PFE)
  • Sysco (SYY)
  • Tenet Healthcare (THC)
  • Tyson Foods (TSN)
-Produced by Drew Trachtenberg.


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91 Comments

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teapartyisdying.uall

We have a internet bully and coward on board,dems.r.dunces.

May 05 2014 at 8:44 AM Report abuse +1 rate up rate down Reply
toosmart4u

Main problem in this country is greed. Corporations sent their good paying jobs overseas for more profits at home. Now they keep the profits overseas as not to pay taxes. Now they lay off people for there is a lack of buyers for their products. We need better laws, if you sell your imported products here you keep your money here and pay your fair of taxes. More people working means a better economy for everyone. Just the large money machine of the GOP does not understand this.

May 05 2014 at 3:06 AM Report abuse -1 rate up rate down Reply
1 reply to toosmart4u's comment
progressivehoax

Hey dunce, it's the Liberal Greed that causes all the problems. Been by a retailer lately and looked at all the Obama/Biden 2012 and other Dummycrat bumper stickers plastered all over the cars in the parking lots and yes Wal-Mart has the most. ROTFLMFAO

May 05 2014 at 7:45 AM Report abuse -2 rate up rate down Reply
1 reply to progressivehoax's comment
republicanslostagain

Hey right wing nut job, How did liberal Greed cause all the problems ? Crack pot conservative it's the republicans who have allowed corporate America to pay no taxes and the republican party also gives Corporate America corporate welfare. Republicans just blocked a increase in the minimum wage, which only benefits corporate America not the working class.

May 05 2014 at 8:01 AM Report abuse +1 rate up rate down
Iselin007

Must be the economy that caused AOL to reduce the features on these message boards.
We use to be able to post live links or photos. Even competitors have done the same down grades to their message boards.

May 05 2014 at 1:34 AM Report abuse rate up rate down Reply
Iselin007

By the way it was Pres Gerald Ford that finally gave Robert E Lee his Citizenship back.

I forget Gerald Ford's real name but it had been originally changed. Somehow it was linked to to my tree through a previous marriage.

May 05 2014 at 1:22 AM Report abuse rate up rate down Reply
Iselin007

As this economic problem drags on foreign buyers and others gobble up America at a discount.

States are not getting back the jobs they lost instead they are getting mainly lower wage crap. The drop in the labor particpation and rise in the not in labor force says people are being displaced by others so they end up disgusted.

May 05 2014 at 1:14 AM Report abuse rate up rate down Reply
Iselin007

The big money is tied up through a series of M&A's, off shore headquarters, and other neat tricks that keep the investments off shore.

If somebody was going to do something it would of been done alread,y after all how many have been if office over the last couple of decades?

Too many speeches to get your vote then the same old story.

May 05 2014 at 1:05 AM Report abuse rate up rate down Reply
republicanslostagain

HOW TO FIX THE ECONOMY? Think Like Henry Ford

Some people argue that the way to fix the economy is to give tax cuts to the highest-earning Americans--the "job creators"--so that they can invest in new companies and create jobs.

Well, we'd all like to pay fewer taxes, but unfortunately, the "tax cuts for the rich" approach almost certainly won't work. Here are a few reasons why:

The richest Americans and companies already have plenty of cash
The reason these rich Americans and companies aren't investing and "creating jobs" is that most American consumers (customers) are broke
Rich Americans actually don't "create jobs"--the whole economy creates jobs
We've been trying the "tax cuts for the rich" approach for three decades, and it is making the inequality problem worse, not better

Now, some other people are arguing that the way to fix the economy is to increase taxes on the rich and companies and "redistribute" this wealth to American consumers.

We will probably need to raise taxes on everyone a bit to reduce the budget deficit (even if we reduce spending--the gap is that big), but this "wealth redistribution" approach also almost certainly won't work. Here are a few reasons why:

The key to creating a sustainable economic recovery is to get the private-sector cranking, not the public sector
Having the government collect taxes and write checks to more than half the country to make things "fairer" will understandably ruffle the feathers of those who are paying those taxes
Class warfare won't help anyone
This is America: We solve our own problems in this country--we don't wait for someone else to come along and give us a handout.

So, then, if the answer isn't 1) cutting taxes for rich Americans and companies, or 2) raising taxes on the rich and giving the money to the poor, what's the answer?

Let's go back to the problem.

Here's the problem in one simple chart:

Corporate profits (blue) are at an all-time high, and American wages (red) are at an all-time low.

http://www.businessinsider.com/henry-ford-salary-increase-2012-8

May 04 2014 at 11:46 PM Report abuse rate up rate down Reply
1 reply to republicanslostagain's comment
progressivehoax

Underwood dunce at the copy and paste. What a loser.

May 05 2014 at 7:46 AM Report abuse -1 rate up rate down Reply
1 reply to progressivehoax's comment
republicanslostagain

Hillbillyville redneck doesn't like facts. He still thinks the world is flat. What a dunce conservative.

May 05 2014 at 8:03 AM Report abuse +1 rate up rate down
republicanslostagain

Most American consumers are strapped or broke because most of the income gains in the past 30 years have gone to the top 10% (and especially the top 1%).

May 04 2014 at 11:43 PM Report abuse +1 rate up rate down Reply
1 reply to republicanslostagain's comment
progressivehoax

Most consumers are broke because just like you, they are too lazy to get up and find a job.

May 05 2014 at 7:47 AM Report abuse -1 rate up rate down Reply
1 reply to progressivehoax's comment
teaparty2implode

Lying sack of shlt.

May 05 2014 at 8:09 AM Report abuse +1 rate up rate down
republicanslostagain

Here's The Real Problem With The Economy

There's a lot of sturm und drang these days about who wrecked the economy. And there is a lot of yelling about how to fix it.

But the economy is complicated, so it's easy to get fooled by someone who is yelling persuasively, especially if they play for your favorite political team.

Lots of things are wrong with the economy, but the main problem can be summed up with two simple facts:

Corporate profits as a percent of the economy are at an all-time high
Wages as a percent of the economy are at an all-time low

The following charts clearly illustrate that problem.

WHAT'S WRONG WITH THE ECONOMY?

1. The health of any business or economy depends on the health of its customers, and most American customers (consumers) are strapped or broke. Consumers account for about 70% of the spending in our economy, and the other 30% is tied to consumer spending (when consumers are broke, businesses don't spend--because there's no one to sell to.)

This sad state of affairs can be seen in the following chart, which shows that the vast majority of the income in the country goes to the top 50%. The bottom 50%, meanwhile, earn less than $30,000 per year.

May 04 2014 at 11:41 PM Report abuse +1 rate up rate down Reply
robtucan

Great News! How sad. More people are not looking for work. Mr. Clueless President is working on "Minimum Wage" instead of getting jobs that pay living wages. You have to go to N. Decota to get a decent paying job if you are not trained. And he does not want the "pipeline" to continue. So Sad. The pipeline would provide jobs that pay well. But, no go work at Mc D. for his minimum wage. Great President, Yea! Thank God he can't run again. or the fools of the US would reelect him so they can get higher Minimum wages. SAD!

May 04 2014 at 10:55 PM Report abuse -1 rate up rate down Reply
1 reply to robtucan's comment
republicanslostagain

So sad the Republican party blocked the American jobs act which would have provided millions of good paying jobs rebuilding our crumbling infrastructure. The Keystone pipeline would not even provide a million jobs.

May 04 2014 at 11:37 PM Report abuse +1 rate up rate down Reply
1 reply to republicanslostagain's comment
Iselin007

I think part of the problem is there isn't enough money coming in. All kinds of taxes would have to be raised to fund it. Too much of the manufacturing required for steel ect shifted overseas making it cheaper to import materials rather than create jobs and revenue here.

Mass quantities of materials , rights of way, design, approvals, and traffic delays are just a snapshop of the complexity involved in rebuliding infrastructure that has grown larger and older over the decades.

May 05 2014 at 1:49 AM Report abuse -2 rate up rate down