Aug. 6 - Summary of business headlines: Blue chips see first Monday rally since May; Knight Capital gets $400 million rescue; Best Buy founder proposes his own rescue; Meat costs eat at Tyson results; Standard Chartered in hot water. Conway G. Gittens reports.
Wall Street ditches the Monday blues with blue chips rallying for the first Monday in 10. Stocks closing at three-months highs led by gains on the Nasdaq. The absence of negative news on Europe's debt crisis helped Wall Street keep some of the afterglow from Friday's report showing better-than-expected U.S. job growth. Knight Capital moves back from the brink. Several firms agreed to give the market maker a $400 million lifeline. And according to Reuters data order volumes picked up from last week when a software glitch brought Knight to its knees. But the rescue comes at a price for existing shareholders, which kept the stock under pressure. The future of Best Buy - also in the spotlight. The retailer's founder made public an offer to take the company private at somewhere between $8 billion and close to $9 billion. But going private may not help the struggling consumer electronics chain turn things around, says Anthony Chukumba of BB&T Capital Markets. SOUNDBITE: ANTHONY CHUKUMBA, SENIOR EQUITY ANALYST, BB&T CAPITAL MARKETS (ENGLISH) SAYING: "One advantage could be that: they can make the necessary changes away from the public scrutiny, the public spotlight and they wouldn't have to worry about hitting quarter-to-quarter earnings numbers but that's the only advantage that I see. I think that given the challenges that they need and the massive investments they are going to need to make, to address those challenges they are much better of being a publicly traded company." In other corporate headlines: Tyson foods, the top U.S. meat producer, announced sales and profits below forecasts and a weak outlook as higher prices force Americans to cut back. Standard Chartered could lose permission to operate in New York State. A banking regulator said the UK bank plotted with Iran to hide more than $250 billion in transactions, violating U.S. anti-money laundering laws. The bank says it is conducting a review. European markets finished higher, just enough to carve out four-month highs. Conway Gittens, Reuters