Apple shares rally, while Microsoft shares tumble The S&P 500 rose 0.2% to 1,089.41 last week, while the Dow retreated 0.6% to 10,136.63. The indexes lost 8.2% and 7.9% in May, respectively, their worst month since February 2009.
U.S. stocks rose last week, easing the biggest Dow Jones Industrial Average decline in May since 1940. This was after increasing consumer confidence and home sales, as well as China’s commitment to maintain investments in Europe eased concern that a debt crisis is spreading. The rise in confidence among U.S. consumers exceeded estimates, with the Conference Board’s Index rising to 63.3, the highest level in two years. Sales of previously owned American homes increased last month to the highest level in five months. U.S. GDP increased by an annual rate of 3% in the 1st quarter. This was a slower pace than the 3.2% forecast calculated last month and less than the 3.4% median.
Apple, the computer maker, overtook Microsoft last week to become the most valuable technology company in the world. Apple rallied 6% to $256.88 last week, and Microsoft declined 3.9% to $25.80, pushing its monthly drop to 16%.

FTSE decline sends shockwaves through the markets The FTSE 100 dropped 0.1% to 5,188.43 in London, trimming its weekly gain to 2.5%.
U.K. stocks declined as U.S. personal spending trailed economists’ forecasts, offsetting Morgan Stanley’s raised forecast on the FTSE 100 Index.
The FTSE 100 posted a monthly decline of 6.6%, the biggest decline since February 2009, on concern the sovereign-debt crisis in Europe is spreading, infecting global credit markets and hurting economic growth. The decline trimmed the valuation of the index to about 12 times the reported profits of its companies, the lowest level since 2008.
BP retreated 5% to 494.8 pence, leading declines in the gauge. The “top kill” procedure to plug a leaking oil well in the Gulf of Mexico could last another 24 to 48 hours, the company said, adding that the “response” costs so far amounted to over $930 million.
The IBEX-35 rose 0.2% last week, but the index still lost 21% this year, more than the 3.5% loss in the Stoxx 600 Index of European shares, and is close to its level before the EU package was announced on May 10.

Oil prices gain after China affirms support for Europe Gold rallied 3.4% last week and is heading for a 3% decline this month, while assets in the world’s largest gold-backed exchange-traded fund increased to a record high. Gold gained significantly last week in New York on speculation that the debt crisis in Europe will boost demand for the precious metal as a safe-haven. At the end of last week, Gold futures for August delivery gained 0.1%, to $1,215.60 an ounce; while Spot prices are up 11% so far this year. Gold futures climbed to a record $1,249.70 on May 14, as investors sought to protect their wealth amid Europe’s sovereign-debt crisis.
Crude oil for July delivery fell 0.8% last Friday, to settle at $73.97 a barrel on the New York Mercantile Exchange. This month’s 14% decline was the biggest decrease since December 2008, when prices touched $32.40. Oil in New York dropped more than $12 a barrel in May as the euro’s retreat reduced the appeal of commodities as an alternative investment. The plummet in oil prices increases concern that Europe’s sovereign-debt crisis will worsen and undermine the global economic recovery.

Euro falls for sixth month on European debt concern The euro declined 2.4% last week to $1.2273 from $1.2570 on May 21, after gaining 1.7%. The common currency declined 7.7% in May, and is on track for the longest monthly losing streak since April 2000. It fell 1.2% over the past 5 days to 111.77 yen, from 113.13 yen. The dollar gained 1.2% against the yen to 91.93, from 90. Morgan Stanley on May 27 lowered its year-end forecast for the euro to $1.16 from $1.24 on concern the sovereign-debt crisis in Greece is now a European one. The euro fell to $1.2352 from $1.2362 in New York yesterday when the 16-nation currency rallied 1.5%. It has fallen 7.1% since April 30, and recorded its sixth straight monthly loss in May.
The Australian dollar had its first five-day advance in more than a month as Asian stocks gained, boosting demand for higher-yielding assets. At the end of last week, Australia’s currency traded at 84.73 U.S. cents. The currency touched 85.52 cents, the most since May 19, and rose 1.9% for the week. The Australian dollar dropped 8.4% so far this month, the biggest monthly decline since January 2009.

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