Wall Street rebounds, but investors dump Facebook
NEW YORK (Reuters) - Stocks rose more than 1 percent on Monday, with the S&P 500 snapping a six-day losing streak in a rebound from equities' biggest weekly drop in almost six months, but Facebook slumped in its second session after a disappointing debut. Tech shares were among the day's biggest gainers, with an S&P sector index surging 2.8 percent on the strength of Apple Inc . Shares of Apple climbed 5.8 percent to $561.28, leading the Nasdaq to its biggest one-day percentage gain since December 2011. ...
Lawmakers frustrated in Wal-Mart corruption probe
WASHINGTON (Reuters) - U.S. lawmakers investigating Wal-Mart Stores Inc for alleged bribery in Mexico are frustrated by the lack of cooperation they have received from the company, a committee staffer familiar with the investigation said. Attorneys for Wal-Mart briefed the committee earlier on Monday about the company's anti-corruption compliance program, the person said. But Wal-Mart has not committed to briefing the panel on the substantive allegations raised by a New York Times report, a key request of the committee, said the staffer, who spoke on the condition of anonymity. ...
EU offers Google last chance in antitrust case
BRUSSELS (Reuters) - The European Union's antitrust chief on Monday ratcheted up the pressure on Google, giving it a matter of weeks to settle an investigation into allegations of anti-competitive behavior and avoid formal charges and a possible fine. Even if Google, the world's most popular search engine, offers concessions to resolve the issue, it will still be under the EU spotlight after fresh complaints about its Android mobile software, the top operating system for Internet-enabled smartphones. ...
Exclusive: U.S. lets China bypass Wall Street for Treasury orders
NEW YORK (Reuters) - China can now bypass Wall Street when buying U.S. government debt and go straight to the U.S. Treasury, in what is the Treasury's first-ever direct relationship with a foreign government, according to documents viewed by Reuters. The relationship means the People's Bank of China buys U.S. debt using a different method than any other central bank in the world. The other central banks, including the Bank of Japan, which has a large appetite for Treasuries, place orders for U.S. debt with major Wall Street banks designated by the government as primary dealers. ...
Jury selected for Gupta insider trading trial
NEW YORK (Reuters) - The insider-trading trial of former Goldman Sachs board member Rajat Gupta, who is accused of spilling secrets about the investment bank, began on Monday with the government saying it would call a former top Goldman banker and a current board member as two of its first witnesses. Gupta is accused of leaking stock secrets to Galleon Group hedge fund founder Raj Rajaratnam, his erstwhile friend and business associate. Rajaratnam was convicted of insider trading last year and is now in prison. ...
Facebook sinks on first day without underwriter support
(Reuters) - Facebook stock sank on Monday in the first day of trading without the full support of the company's underwriters, leaving some investors down nearly 25 percent from where they were Friday afternoon. Facebook's debut was beset by problems, so much so that Nasdaq said on Monday it was changing its IPO procedures. That may comfort companies considering a listing but does little for Facebook, whose lead underwriter Morgan Stanley had to step in and defend the $38 offering price on the open market. Without that same level of defense, its shares fell $4.64 to $33. ...
JPMorgan stops buybacks while reducing bad trades
NEW YORK (Reuters) - JPMorgan Chase & Co Chief Executive Officer Jamie Dimon said on Monday that the bank had suspended repurchases of its stock, but is maintaining its dividend, while working down losing trades in credit derivatives. Shares of JPMorgan were down 1 percent at $33.13 in morning trading after Dimon started speaking at the Deutsche Bank Securities Global Financial Services Investor Conference in New York. The bank announced on May 10 that it had lost at least $2 billion mishandling a portfolio of credit derivatives. JPMorgan won permission from the U.S. ...
Wall Street edges up but Facebook’s decline weighs
NEW YORK (Reuters) - Stocks edged up on Monday from their worst weekly decline for the year as world leaders expressed support for Greece to stay in the euro zone, but gains were limited as shares of Facebook dropped more than 13 percent shortly after the open. Facebook Inc's shares fell below their $38 issue price as support from underwriters of the initial public offering dissipated after its Friday debut. The stock dropped over $5 to hit a session low of $33.00 in early trading. ...
Eaton to buy Cooper Industries for $11.8 billion
(Reuters) - Diversified industrial manufacturer Eaton Corp struck a deal to buy electrical equipment maker Cooper Industries for $11.8 billion in cash and stock, paying a 29 percent premium to broaden its services to the electrical industry. Eaton, announcing the deal on Monday, also said it would reincorporate in Ireland, where Cooper is based. Eaton will pay $72 per share for the acquisition: $39.15 in cash and 0.77479 share for each Cooper share. Cooper shares rose nearly 25 percent to $69.77 in morning trading, while Eaton was down 0.8 percent at $42.08. ...
Rajat Gupta faces jury in insider trading case
NEW YORK (Reuters) - Barely a day went by at the insider-trading trial of multimillionaire hedge-fund founder Raj Rajaratnam a year ago without mention of Rajat Gupta, a boldface name in business and charity circles. On Monday in the same federal court in New York, it will be Gupta's turn to go on trial. The former Goldman Sachs Group Inc and Procter & Gamble board member is accused of leaking stock secrets to Rajaratnam, his erstwhile friend and business associate who was convicted and is now in prison. ...
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