U.S. Stocks Retreat on M&A Concern; Yahoo, Countrywide Tumble

May 5 (Bloomberg) -- U.S. stocks fell as Yahoo! Inc. slid the most in almost two years after Microsoft Corp. abandoned its $50 billion bid for the company and Countrywide Financial Corp. plunged on concern its suitor will back out as well.

Yahoo, the most-visited Web site, tumbled 16 percent as analysts advised selling the shares. Countrywide, the mortgage lender whose debt was cut below investment grade by Standard & Poor's, retreated after Friedman Billings Ramsey & Co. said Bank of America Corp. should abandon its $4 billion bid. Limited Brands Inc. led declines in 27 of 30 companies in the S&P 500 Retailing Index as oil jumped to a record above $120 a barrel.

Source: Bloomberg


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