Wall Street declines

CNBC's Rebecca Jarvis - Wall Street beginning the week in negative territory with the Dow down about 89 points, the Nasdaq losing 13 the S&P 500 slipped a little more than 6. Crude oil meantime climbing to a fresh high over USD 120/bbl, its concerns about supply disruptions in Nigeria and a weakening US dollar lifted prices. 

Microsoft meantime withdrawing it’s USD 47.5 billion bid for Yahoo after a three-month merger battle. Yahoo stocks commenting on the news but investors so holding out hope that this software maker will renew its takeover attempt if Yahoo continues to struggle.      

Another deal could also be on verge of collapse and analysts of the FBI capital markets says Bank of America should walk away from its deal to buy mortgage provider Countrywide Financial. Analyst Bob Miller says Countrywide’s loan portfolio would hurt Bank of America’s earnings and said be aware with additional USD 20-30 billion in writedowns.

It is a weekend of wisdom from Warren Buffett of Omaha a record 31,000 people attended Berkshire Hathway’s annual meeting. The gathering often referred to as the ‘Woodstock of Capitalism’. Buffett told our Becky Quick- the Fed probably doesn’t need to cut interest rates any further and it did the right thing in helping rescue Bear Stearns.  

Wall Street Action: 

• Dow down 89 pts, Nasdaq loses 13 and S&P 500 down around 6 pts
• Crude surges to another record high, over $120/bbl
• Microsoft abandons $47.5 bn offer for Yahoo
• BoA may walk out of takeover talks for Countrywide
• Berkshire Hathaway's annual meeting was held over weekend
• Buffett says Fed may not need to cut rates any further
• Buffett says Fed did the right thing by rescuing Bear Stearns