May 6 - Summary of business headlines: Financials, Apple drive stocks to new records; Tyson blames chicken for beef drop; BMC's private equity deal; MBIA's $1.6 billion settlement. Bobbi Rebell reports.
A split decision on Wall Street. Just a day after reaching record highs, the S&P 500 does it again- lifted by financials-, but the Dow loses steam- closing Monday in the red. The Nasdaq posting the biggest gain of the three major indexes, driven by strength in Apple stock. So far this year the S&P 500 is up more than 13 percent- thanks to strong corporate earnings and low interest rates. Michael Shaoul, Chairman of Marketfield Asset Management says timid investors are missing out. SOUNDBITE: MICHAEL SHAOUL, CHAIRMAN, MARKETFIELD ASSET MANAGEMENT (ENGLISH) SAYING: "I think you really want to be invested. I mean I think people- everyone's been sitting around looking for pullbacks. All of sudden you look at the S&P up 15% and nobody keeping up with it." Where's the beef? Tyson Foods blamed customers choosing chicken over beef for a steep drop in its second quarter earnings. The stock dropped sharply on the news. Shares of BMC software dipped. The business software maker is being acquired by a private equity group led by Bain Capital and Golden Gate Capital for a very small premium. Shares of MBIA rose 50 percent- to their highest level since September of 2008. The bond insurer and Bank of America reached a more than $1.6 billion settlement on a legal dispute related to mortgage securities claims. Bank of America and Wells Fargo are being accused of violating the National Mortgage Settlement brokered last year. New York's Attorney General says he plans to sue the banks because they have been too slow in processing mortgage modification applications. Iron Man 3 was the superhero of the box office- the film from Disney's Marvel Studios had the second best opening weekend in box office history- bringing in more than $175 million dollars. Only Avengers has done better. In Europe: a holiday in the UK kept volumes light- The German Dax and the Paris CAC-40 closed slightly lower.