STOCKS RETREAT FROM 3-MONTH HIGHS
The headline: Stocks Surrender Early Rally Ahead Fed Cuts by Quarter Point, Indicates Pause Is Likely
The Fed’s move was expected, Pete Najarian said. It was the late-day sell off in financials that was surprising. Once again, the XLF failed to break the $27 point of resistance even though the only drag on the index was Citigroup (C), he said.
Even though stocks closed lower, April is in the books and was the best month for the S&P since December, 2003. Najarian called it a “relief rally” that was much needed after the Bear Stearns fall in March.
That might sound like a great statistic, but remember that the market is still lower for the year.
WSJ: MICROSOFT ANNOUNCEMENT ON YAHOO IMMINENT
Jeff Macke said, as a Microsoft shareholder, he would rather the company walk away from the takeover than raise the bid. Some are saying Yahoo expects Microsoft to go as high as $39, which Macke thinks is insane. Microsoft does not need Yahoo, he said.
Pete Najarian disagreed, saying the merger is necessary for Microsoft to contend with Google’s (GOOG) dominance in search.
Karen Finerman reiterated her wish that Microsoft takes its offer straight to Yahoo shareholders. That would move the ball forward, she said.
GOOGLE JUMPS 3%
The headline: Google Among Nasdaq’s Strongest Performers Wednesday
The stock surged after Google CEO Eric Schmidt told CNBC that the YouTube unit is becoming profitable.