Stocks popped Thursday
morning as
investors welcomed a $46 billion bid for Anheuser-Busch, a stronger dollar,
weaker oil prices and higher-than-expected retail sales.
Stocks tumbled Wednesday, sending the Dow down
more than 200 points as oil spiked $5 a barrel and the Federal Reserve's 'beige
book' survey showed continued economic weakness.
But the news was more positive Thursday and
stocks rallied, with investors willing to set aside a management shakeup at
troubled Lehman Brothers and a big rise in weekly jobless claims.
Retail sales. Sales jumped 1% in May, thanks to
the government's economic stimulus plan, double what economists were expecting.
Sales rose 0.4% in April. Sales excluding volatile auto sales rose 1.2% in May,
versus forecasts for a rise of 0.7%. Sales ex-autos rose 1% in April.
Anheuser-Busch said late Wednesday that Belgian
rival InBev has made a more than $46 billion offer for the maker of Budweiser,
confirming earlier speculation that a merger was brewing.
The troubled financial firm Lehman Brothers said
it was replacing two top executives, including its chief financial officer,
just days after announcing a massive $2.8 billion quarterly loss. Lehman stock
fell about 5%.
U.S. light crude oil for July delivery fell $4.66 to $131.72 a barrel on the New York
Mercantile Exchange.