- Stocks end in the blue
- Dow Jones Industrials at record high, but under 16,000
- Apple falls amid Beats takeover reports
- Omnicom, Publicis call off merger
- CBS, Ralph Lauren, GAP report earnings
Dow Jones: 0.19%
S&P 500: 0.13%
The main US stockmarket averages ended the session in the blue but were mixed on the week, as investors continued to shy away from so-called 'growth' and 'small capitalisation' stocks, shifting instead towards their larger and more conservatively valued peers such as on the S&P 500
and Dow Jones Industrials.
Acting as a backdrop, traders continue to warily eye the situation in Ukraine. In the afternoon it was reported that the European Union might on Monday unveil penalties on those Russian companies which expropriated assets in Crimea.
Majority of Ukrainians reject secession
On Saturday German Chancellor Angela Merkel insisted that Russia do more to create the conditions necessary so that the Ukrainian Presidential elections, scheduled for May 25th, can proceed in a proper manner. The Organisation for Security and Co-operation in Europe (OSCE) is expected to deploy 1,000 observers to the country so as to verify that they meet international standards.
Should Russia not do more to help those elections to be carried out then it risks further EU sanctions.
To take note of, a study by the Pew Research Center showed that even in the east 70% of Ukrainians reject secession.
Dow Jones Industrials finished at record high, but resistance at 16,000 holds
The S&P 500 was down 0.48% for the week at 1,878.48m while the Dow Jones Industrials managed another record close on Friday, after rising by 0.43% over the last five days to end at 16,583.34. The Nasdaq-100 shed 0.89% over the week.
Despite the above, Chris Beauchamp, Market Analyst at IG, said: "The inability of the Dow Jones to hold above 16,600 is a worrying short-term sign for the bulls and may well signal another swift retest of 16,400."
Apple set to use some of its cash pile
Tech giant Apple traded lower on reports that it is in talks to buy Beats Electronics, the audio products and music streaming group founded by hip-hop star Dr Dre and record producer Jimmy Iovine. Apple could spend up to $3.2bn for the company, famous for its trendy 'Beats by Dr Dre' headphones, according to media reports.
Ishaq Siddiqi from ETX Capital said that this would represent the biggest purchase yet by Apple and makes strategic sense for the company: "Apple are in need for a cool branding and the company's current audio equipment isn't exactly regarded as the best in industry while it's streaming music service is under threat by rivals like Spotify and Google Play."
Omnicom was moderately higher after having pulled its proposed $35bn merger with rival Publicis to create the world's biggest advertising company.
TV group CBS dropped after first-quarter sales fell by a worse-than-expected 4.6% to $3.86bn, missing the $3.92bn consensus forecast, as advertising revenues dropped 12%.
Shares in Ralph Lauren were moving sharply lower after the fashion retailer warned that next year's operating margins will weaken as a result of continued investment in infrastructure and higher advertising and marketing spending.
Sector peer GAP was headed the other way, having announced that quarterly earnings per share would come in at between 56 and 57 cents in the latest quarter, well ahead of forecasts.
West Texas Intermediate futures were down by 0.23% at $100.03 a barrel on the NYMEX.
10-year US Treasury yields were up by one basis point at 2.62%.