Stocks ended on a mixed note to open the week on Monday, as traders waited for the federal hammer to fall on insider trading rings on Wall Street and looked for further developments in the Irish debt debacle.
The major averages all moved to the upside in late-session dealing, although only the tech-heavy Nasdaq managed to finish in positive territory. The Nasdaq gained 13.90 points or 0.6 percent to close at 2,532.02, while the Dow slid by 24.97 points or 0.2 percent to 11,178.58 and the S&P 500 declined by 1.89 points or 0.2 percent to 1,197.84.
In a surge against the practice of insider trading on Wall Street, the FBI raided the offices of two hedge funds run by former managers of SAC Capital today, according to the Wall Street Journal.
The lack of clarity as to what other firms are in the government's crosshairs drove some selling in financial stocks on the day.
Meanwhile, in Europe, worries persisted that Ireland's delay in accepting rescue funds has further undermined the viability of the Euro. Fears about the financial and economic stability of the Eurozone are also being exacerbated by potential problems on the horizon in Spain and Portugal.
In corporate news today, Tyson Foods (TSN) posted a 6.1 percent gain after its fourth quarter profit came in at $0.64 per share, topping estimates for earnings of $0.56 per share. The stock ended at $16.60, its best closing price in nearly two months.
Software firm Novell Inc. (NOVL) was also on the upside today after announcing that it agreed to be acquired by privately held peer Attachmate Corp. for $6.10 per share or about $2.2 billion in cash. Shares of Novell jumped by 6.6 percent, bouncing off of the two and a half month closing low set last Friday.
Sector News
Banking stocks ended sharply lower on the day, despite a rebound by most other sectors. The KBW Bank Index saw loss of 1.5 percent, ending at its lowest closing level in three weeks.
Marshall & Ilsley (MI) was one of the leading percentage decliners in the sector, falling by 4.6 percent. The slide took the stock down to its lowest closing price since July of 2009.
Railroad, defense and tobacco stocks also moved lower on the day but closed well off of their worst levels.
On the upside, health insurance stocks saw considerable on the day, with Humana (HUM) leading the sector higher after announcing an agreement to acquire Concentra, a privately held health care company, for approximately $790 million in cash.
Gold, electronic storage and semiconductor stocks also posted strong gains, helping to offset some of the losses. The NYSE Arca Gold Bugs Index rose by 1.5 percent as the price of gold gained $5.50 to close at $1,357.80 an ounce for the day.
The NYSE Arca Disk Drive Index and the Philadelphia Semiconductor Index gained 1.2 percent and 1.1 percent, respectively, helping the tech-heavy Nasdaq index to close the session in positive territory. The disk drive index ended the day at its best closing level since late April.
Dow Components
The Dow's financial components led the way lower on a percentage basis on the day.
Bank of America (BAC) fell by 3.1 percent, JP Morgan Chase (JPM) slid by 2.3 percent and American Express (AXP) dipped by 1.2 percent amid today's pressure on the financial sector. Despite the losses, the stocks largely remained rangebound.
General Electric (GE) was also under pressure, posting a loss of 1.2 percent. Even with the day's decline, the stock continued to trade in a recent range.
On the upside, Hewlett Packard (HPQ) was the only Dow component to move up by more than 1 percent, advancing by 1.8 percent ahead of the release of its quarterly results after the closing bell. The upward move lifted shares further away from last week's five-week closing low.
Merck (MRK) Boeing (BA) and Intel (INTC) also ended higher but by much more modest margins.
Other Markets
In overseas trading, stock markets in the Asia-Pacific region ended on a mixed note Monday. Japan's benchmark Nikkei 225 Index gained 0.9 percent, while Hong Kong's Hang Seng Index fell by 0.4 percent.
Meanwhile, the major European markets ended down by varied margins. The German DAX Index slid by 0.3 percent, while the U.K.'s FTSE 100 Index and the French CAC 40 Index fell by 0.9 percent and 1.1 percent, respectively.
In the bond markets, treasuries ended notably higher. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, closed at 2.813 percent, posting a loss of 6.2 basis points.
Looking Ahead
Tuesday, the markets will look to the second estimate on third quarter GDP, the minutes of the latest Federal Reserve meeting and data on existing home sales.
Among earnings, quarterly results from Hewlett Packard, Jack in the Box (JACK), La-Z-Boy (LZB) and Pacific Sunwear (PSUN) are likely to be in focus.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.