Stocks Fall on Monday Despite US Home Sales Reaching Two-Year High
On Monday skepticism reigned as stocks declined and investors awaited the upcoming meeting of European leaders in response to the debt crisis. Concerns about the end-of-week EU summit grew despite the report of the highest US new home sales in two years this May, beating previous expectations. In Europe, both Cyprus and Spain requested bailouts from the EU. In company news, Microsoft (MSFT) announced its plan to buy Yammer, a social network site providing services similar to Facebook (FB), for $1.2 billion, and Constellation Brands Inc. (STZ) came out with a possible report to buy Corona brewer Grupo Modelo SAB.Chesapeake Energy Corp.'s (CHK) shares dropped after news surfaced about colluding with a Canadian natural gas firm over suppressing land prices.
Word on the Street
- Both Spain and Cyprus request bailouts on Monday from the EU.
- Microsoft (MSFT) buys social network site Yammer for $1.2 billion.
- Demand for US homes reaches two-year high as mortgage rates drop.
- Wells Fargo (WFC) acquires $6 billion in German bank WestLB's lending portfolio.
- Chesapeake Energy Corp.'s (CHK) shares dropped more than 8% on Monday after a report on land prices.
- Investors sees safe-haven in Wal-Mart (WMT) amid fear of the European debt crisis and US economy.
- Constellation Brands Inc (STZ) shares jump on Monday after Grupo Modelo SAB acquisition reports
- Carmax (KMX) Skids Out, Misses on Both Top and Bottom Lines.
Published on Jun 25, 2012By InvestorGuide Staff