Wall Street Ends Lower on Spain Downgrade

Word on the Street

• President Barack Obama arrived in Louisiana today to assess BP’s (BP) efforts to stop massive amounts of oil from continuing to leak into the Gulf of Mexico. He was taken immediately to a briefing by U.S. Coast Guard Admiral Thad Allen and others. He is expected to make comments to the media later.
• Personal spending was flat in April, after six months of increases. The Commerce Department’s report showed purchases were little changed last month after climbing 0.6 percent in March. The report also pointed out that more people are holding on to their money. The savings rate rose 3.6 percent in April. The rate had fallen to 3.1 percent in March.
• The Memorial Day weekend is kicking off the summer with cheap gas prices across the nation. The traditional start to the summer driving season is usually a time when gas prices increase, but consumers are actually saving money at the pump this year. Gasoline prices will be at the lowest level since March as US drivers take to the highways.
• Royal Dutch Shell PLC (RDS.A) said Friday it will buy East Resources Inc. for $4.7 billion in cash. The deal expands Shell’s holdings of US shale gas deposits. Shell said it was buying the company from Kohlberg Kravis Roberts & Co., as well as Jefferies & Company and privately held East Resources itself. The deal must be approved by regulators.
• Toys R Us Inc., which went private in a 2005 purchase by a private-equity consortium, plans to return to the public markets. The retailer plans to raise $800 million in an initial public offering . Toys R Us intends to have its stock listed on the New York Stock Exchange under the symbol TOYS.
• Berkshire Hathaway Inc . (BRK.A) confirmed that Warren Buffett has been subpoenaed to testify before the Financial Crisis Inquiry Commission regarding the causes of the 2008 financial crisis. Buffett rebuffed earlier requests by the Financial Crisis Inquiry Commission to submit to voluntary questioning.

Other Interesting Tidbits

• These Companies Are Built To Enjoy – Compelling opportunities for angel investors and entrepreneurs lie with companies like these.
• The 50 Worst Inventions – From the zany to the dangerous to the just plain dumb.
• When Banks Don’t Trust Banks – Credit markets are misbehaving again. But having survived the panic of 2008, investors may no longer be so easily rattled.
• Is the Stock Market Correction Over? – A dozen market watchers weigh in on where stocks go from here.