The markets opened mixed as investors continued to worry about loan losses in the financial services sector. Meanwhile, oil prices fell as OPEC members were reportedly considering a hike in output. The Dow rose 40 points to 13,082 while Nasdaq held steady at 2627.
On the upside
Shares of Cognos (Nasdaq: COGN) surged after IBM offered $5 billion in cash to buy the business intelligence software and service provider.
Satellite communications company Globecomm Systems (Nasdaq: GCOM) was awarded a government contract and raised its revenue and earnings guidance.
Shares of Intuit (Nasdaq: INTU) rose ahead of its 1st quarter results. Last week, the tax and personal finance software provider hired a new CFO.
On the downside
Shares of E-Trade Financial (Nasdaq: ETFC) lost half their value after the company raised the possibility of a large writedown in mortgage-backed securities. Analysts downgraded the stock on bankruptcy concerns.
EchoStar Communications (Nasdaq: DISH) reported a high churn rate of customers for its satellite television service.
Momentum stocks, such as Baidu.com (Nasdaq: BIDU), were slammed by another round of profit-taking.
In the broad market, advancing issues outpaced decliners by a margin of 6 to 5 on the NYSE and by a margin of 10 to 9 on Nasdaq. The Russell 2000 which tracks small cap stocks edged up a point to 774.