The major indexes opened lower while the broad market moved higher as investors mulled over higher oil prices and an increase in demand for durable goods. The Dow lost 26 points to 11,386. Nasdaq slipped 2 points to 2359.
On the upside
Ricoh Co. of Japan offered $1.6 billion to acquire Pennsylvania-based IKON Office Solutions (NYSE: IKN), which sells and leases copiers, printers and other office machines.
Clothing retailer Talbots (NYSE: TLB) posted a 2nd quarter loss that doubled versus year-ago levels. Company management pointed out that it was on track to cut costs and to close underperforming stores.
Shares of Fannie Mae (NYSE: FNM) and Freddie Mac (NYSE: FRE) started to rally for a 3rd consecutive session on hopes that the two troubled mortgage companies can avoid a government bailout.
On the downside
Shares of Amylin Pharmaceuticals (Nasdaq: AMLN) tumbled after the drug developer reported 4 deaths related to its diabetes drug treatment, a joint venture of Eli Lilly & Co. (NYSE: LLY).
Apparel retailer J. Crew Group (NYSE: JCG) posted 2nd quarter results that missed estimates and lowered its outlook for the rest of the year.
Airline stocks took a hit as oil prices rose. Shares of UAL (Nasdaq: UAUA) and AMR Corp. (NYSE: AMR) fell sharply.In the broad market, advancing issues outpaced decliners by a margin
of nearly 5 to 4 on the NYSE and by a slim margin on Nasdaq. The Russell 2000
which tracks small cap stocks added 2 points to 726.
