Market Wrap: Say Cheese, Facebook!; Dow Below 13K; AOL Has Its Own $1B Deal

April 9, 2012 5:45 PM EDT
Market wrap-up for April 9th

End of the Day: Dow Jones down 130.6 to 12,929.59; Nasdaq down 33.4 to 3,047.08; S&P 500 down 15.9 to 1,382.20

The following is a brief summary of events moving markets today:
  • Life back below 13K: With Monday's dip, the Dow Jones Industrial Average (NYSE: DIA) closed below 13,000 for the first time since March 12th, which was the first time it closed above 13,000 in several years. Investors remain focused on Friday's nonfarm payroll numbers as well as the Fed's latest indication which suggested further quantitative easing may not be coming anytime soon.

    Later Monday, Fed Chief Ben Bernanke will be making some statements at conference in Georgia.

  • Still, its more jobs, right?: Last Friday, Labor Department data showed the addition of 120,000 nonfarm positions in March, less than the 205,000 expected on the Street and down from a 240,000 gain in February.

    Private sector payrolls showed 121,000 job gains, down 112,000 from 233,000 in February. The Street was looking for a gain of about 215,000. For more color, click here.

  • Microsoft's having a "patents" party, invites AOL: AOL (NYSE: AOL) agreed to a $1.056 billion patent deal with Microsoft (Nasdaq: MSFT).

    Under the agreement, AOL will sell over 800 patents and the related applications to Microsoft and also grant Microsoft a non-exclusive license to its retained patent portfolio. AOL also received a license to the patents being sold to Microsoft.

    Should the deal fail to close, AOL will need to pay a $211 million breakup fee.

  • Overall, the consensus is 'unlike': Facebook (Nasdaq: FB) announced an agreement to acquire Instagram, a fun, popular photo-sharing app for mobile devices. The total consideration for San Francisco-based Instagram was approximately $1 billion in a combination of cash and shares of Facebook. The transaction, which is subject to customary closing conditions, is expected to close later in the second quarter 2012.

    For more color from Facebook CEO Mark Zuckerberg, click here.

    Largely, the reaction from the web-o-sphere is that the deal "Zucks." There's already an article on Mashable highlighting how many are already exporting Instagram photos and closing off accounts.

  • Quite a transition: Avon Products (NYSE: AVP) named Johnson & Johnson (NYSE: JNJ) Vice Chairman Sherilyn McCoy as its next CEO. Items McCoy oversaw at J&J include: pharmaceuticals, science and technology, information technology and the consumer business. Items not overseen include: door-to-door sales techniques.

    For more color on McCoy, click here.
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