The markets opened lower as consumer confidence fell sharply due to record home foreclosures and higher gasoline prices. The Dow lost 89 points to 11,753 while Nasdaq tumbled 24 points to 2361.
On the upside
Kroger (NYSE: KR) posted higher 1st quarter profits as discounts drew budget shoppers to their stores.Photography company Eastman Kodak (NYSE: EK) received a $581 million tax refund and announced a buyback of up to $1 billion in its stock.
Shares of Royale Energy (Nasdaq: ROYL) surged to a new record high as investors focused on promising drilling prospects and a company disclosure that it had returned to profitability.
On the downside
United Parcel Service (NYSE: UPS) warned that its 2nd quarter profits would be hurt by higher fuel prices and the weak U.S. economy.Shares of bond insurer MBIA (NYSE: MBI) fell to its lowest levels in two decades due to the continued decline in business.
HealthSouth (NYSE: HLS) sold stock to J.P. Morgan Securities to pay debt and raise working capital. Terms of the deal were not disclosed.
In the broad market, declining issues outpaced advancers by a margin of more than 5 to 1 on the NYSE and by more than 3 to 1 on Nasdaq. The Russell 2000 which tracks small cap stocks dropped 9 points to 710.
