Stocks Open Higher As Investors Embrace Positive Economic Signs
Investors regained confidence in a possible economic recovery as April durable goods orders rose 1.9% and weekly 1st time unemployment claims drifted lower. The Dow rose 20 points to 8320 while Nasdaq added 3 points to 1733.
On the upside
Time Warner (NYSE: TWX) announced plans to spin out AOL as a separate Internet company headed by Tim Armstrong, a recent hire from Google (Nasdaq: GOOG).
General Motors (NYSE: GM) announced plans to shut down 14 factories. Meanwhile, CNBC reported that GM's bondholders accepted an amended offer to swap its debt for a 10% stake in the automaker and a warrant to buy up to 15% more by cooperating in bankruptcy proceedings to sell assets.
Shares of biotechnology company Exelixis (Nasdaq: EXEL) surged after it announced a partnership with French drugmaker Sanofi-Aventis (NYSE: SNY) to develop new cancer drugs.
On the downside
Shares of Netezza Corporation (NYSE: NZ) fell after the data solutions company posted higher revenues and a slim loss that missed expectations.
An analyst downgraded Bally Technologies (NYSE: BYI) which makes slot machines.
