Market Recap: Stocks Finish the Week With a Merger-Related Bang; Google and Yahoo! in Focus

With their morning cup of java, investors were greeted with news that Google (GOOG) saw its fourth-quarter earnings fall short of the consensus estimate. This news was offset by reports that Microsoft (MSFT) would try to capitalize on GOOG's perceived weakness by making an offer to purchase Yahoo! (YHOO) - a rather substantial offer, at that. Whatever enthusiasm existed was curbed a bit by news that nonfarm payrolls fell more than expected. Nevertheless, the intraday low was reached early in the session and the day finished in positive territory.

When the closing bell sounded, the Dow Jones Industrial Average (DJIA – 12,743.2) advanced nearly 93 points, despite the fact that 8 of its components dropped into negative territory. The largest loser on the day was Microsoft, followed by Exxon Mobil (XOM) and Boeing (BA). The remaining 22 stocks were led higher by IBM (IBM) and 3M Company (MMM). For the week, the blue-chip barometer added more than 4%. Unfortunately for the Dow, it proved unable to close above its descending 10-week and 20-week moving averages.

The S&P 500 Index (SPX – 1,395.42) edged close to a 17-point gain before the closing bell sounded. The index finished the week with a 4.9% gain, but could not break through overhead resistance at the 1,400 level. Finally, the tech-rich Nasdaq Composite (COMP – 2,413.4) added 23.5 points on the day and 3.8% for the week. Although the Nasdaq topped the 2,400 level, it could not advance through its 10-week and 20-week moving averages.

Turning to equities in focus, Motorola (MOT) reported that it will consider spinning off its mobile-device unit ... the potential buyout news sparked a flurry of option activity on Yahoo! (YHOO) ... Affymetrix (AFFX) rallied thanks to a strong 2008 earnings outlook ... Digital River (DRIV) plummeted following a weak forecast ... we also took a look at whether or not a win by the Patriots would spell doom for the market ... and today's Quote of the Day comes from Senator Arlen Spector (R-Pa.), who, in this article on ESPN.com, noted he may subpoena NFL Commissioner Roger Goodell and ask why the New England Patriots' Spygate video tapes were destroyed and review the NFL's antitrust status. Specter noted that the matter "may not compare to the CIA's destruction of interrogation tapes," but the Senator noted:

"I do believe that it is a matter of importance. It's not going to displace the [economic] stimulus package or the Iraq war, but I think the integrity of football is very important, and I think the National Football League has a special duty to the American people – and further the Congress – because they have an antitrust exemption."

But these weren't the only headlines hitting the Street today. Click on the links below for our Daily Market Blog coverage of:

• Exxon Mobil (XOM)
• Beazer Homes (BZH)
• Genzyme (GENZ)
• and Electronic Arts (ERTS)

And, in case you missed it, our resident fight master, Mark Fightmaster, took a look at a company with nearly as cool a name - Force Protection (FRPT)- in this week's edition of StockCenter. Chuck Norris wants you to click here to watch the video, and you better do what Chuck wants.

Black gold slipped for a second straight day this afternoon, thanks to the weaker-than-expected payroll data. This poor data suggests that the U.S. economy could be falling into recession, meaning there could be curbed crude spending in the world's largest crude consumer. The front-month contract shed 3%, or $2.79, to close at $88.96 per barrel. The intraday low for the contract stood at $88.25 per barrel. Along with the payroll data, the Organization of Petroleum Exporting Countries (OPEC) decided to keep its current output levels unchanged. This move was expected, so it had little to do with the contract's drop.

Gold futures could not take advantage of the day's early weaker-than-expected payroll numbers, as the dollar strengthened throughout the day. As a result of the greenback's renewed strength, the malleable metal slipped $14.50 to close at $913.50 an ounce. Compared to a week ago, gold slipped $2.70. Some analysts are looking at today's (and this week's) action as a "much needed breather after the 10% increase in value in January."

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