By Donna Kardos Yesalavich, MarketWatch
U.S. stocks fell slightly Friday morning, in the final session
of a strong year in which the market climbed to two-year highs.
The Dow Jones Industrial Average (DJI) slipped 9 points, or
0.1%, to 11560. J.P. Morgan Chase & Co. (JPM) led the measure's
decline with a 0.4% drop.
The Dow came into Friday's session with an 11% gain for the
year, its second-straight annual gain, with almost half of the 2010
gain having come this month. The measure's 6.9% jump this month
represents its best December since 2003.
The Nasdaq Composite (RIXF) shed 0.1% to 2661. It has jumped 17%
this year.
The Standard & Poor's 500 index (SPX) declined 0.1% to 1256.
The S&P 500 is up nearly 13% for the year, with a 6.6% climb
this month marking its best December performance in 19 years. The
measure also achieved its best fourth-quarter performance since
2003.
No key data are on tap for Friday, which will be a full session
for the U.S. stock market although volume is expected to be
particularly light due to the holiday. The bond market closes
early.
In overseas markets, China's Shanghai Composite Index rose 1.8%
but ended the year with a 14.3% loss. The Japanese market was
closed. Read more on best and worst Asian markets.
In Europe, the FTSE 100 shed 1.2% in a shortened session. German
markets were shut for the year, finishing up 16%. Germany was one
of the best-performing stock markets in the region in a year marred
by sovereign-debt crisis.
The dollar fell, with the U.S. Dollar Index (DXY) -- tracking
the U.S. currency against a basket of six others -- off 0.6%.
Treasurys were mixed, with lower demand for the two-year note
(UST2YR) lifting its yield to 0.65% while gains in the 10-year
note(UST10Y) pushed its yield down to 3.36%.
Crude-oil futures fell while gold futures advanced.
Among stocks in focus, Imax Corp. (IMAX) jumped 19% after U.K.
newspaper the Daily Mail said Sony Corp. (SNE) is considering a
$40-a-share bid for big-screen movie company, with Walt Disney Co.
(DIS) interested as well. Imax Chief Executive Richard Gelfond and
Chairman Bradley Wechsler are thought to be pushing for a sale to
Sony, according to the report. U.S. shares of Sony shed 0.2% while
Disney declined 0.4%.
CVS Caremark Corp. (CVS) edged up 0.4% after the drugstore chain
agreed to acquire Universal American's Medicare Part D prescription
drug business for $1.25 billion, a deal that will more than double
the size of CVS's share in that program. Universal American's (UAM)
stock surged 37%, as the company said shareholders would receive
about $12.80 to $13 per share in cash after the payment of other
transaction-related expenses.
Borders Group (BGP) tumbled 16% after media reports quoted the
company saying it could delay payments to some publishers, as part
of an effort to refinance debt. The book retailer also said there
were no guarantees those efforts would be successful.