Der Dreck kommt nachbörslich oder morgen raus ...
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One of the big stories of the day involved a company whose stock wasn't even trading -- Adelphia Communications . The cable company said John Rigas resigned as chief executive after 50 years at the helm. The company also suspended its year-end audit to investigate unspecified issues that had surfaced and hired lawyer David Boies to help with the probe.
The move comes amid a formal government investigation of Adelphia's off-balance sheet loans, which has dragged the stock down nearly 75% in the last two months. Erland Kailbourne, the chairman of the company's audit committee, will replace Rigas. When the stock will trade again is anybody's guess. Nasdaq suspended trading in the issue and requested additional information from the cable operator. Trading will remain halted until Adelphia, which went out Tuesday at $5.70, satisfies the request.
In the retail space, Federated Department Stores , the operator of Macy's and Bloomingdale's, posted a higher first-quarter profit as improved margins offset weaker sales. The company's earnings matched the consensus estimate, and the stock was advancing 1.3% to $43.54 on the news. Meanwhile, Abbott Labs , a maker of pharmaceutical and healthcare products, shed 9.2% to $47 after one of its plants failed to meet the Food and Drug Administration's quality standards.
Elsewhere, Newmont Mining , the world's largest gold producer, recorded a narrower first-quarter loss thanks to increased sales resulting from higher gold prices. The company posted a loss of $10.9 million, or 4 cents a share, compared with a loss of $39.1 million, or 20 cents a share, a year earlier. The results include a $12.3 million mark-to-market gain from derivatives. Newmont was down 1% to $27.76.
U.S. Treasury issues were mixed. The 10-year note was up 1/32 to 97, yielding 5.27%. Longer-term notes were lower.
Europe's bourses were mostly higher. London's FTSE 100 was up 0.4% to 5259, but Germany's Xetra DAX was losing 0.1% to 5043. Asia's markets rallied. Japan's Nikkei 225 rose 2.5% to 11,643, while Hong Kong's Hang Seng finished up 1.3% to 11,838.