By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market moved higher on
Monday, as drug and telecom companies announced mergers.
The market wobbled temporarily after the White House announced a
new wave of sanctions against Russia, but quickly recovered.
In economic news, a report on pending-home sales for March is
due at 10:00 a.m. Eastern and will attract investor attention. In
February, pending home-sales fell 0.8%, marking an eighth month of
declines.
The rest of the week, investors will focus on earnings and
economic reports as well as the Federal Open Market Committee
meeting. The Fed is expected to announce further trimming of the
bond-buying program by $10 billion. GDP data expected to be
released Wednesday probably will show the economy expanded 1% in
the first quarter. On Friday, nonfarm-payrolls data is the main
event, and is forecast to show that more than 200,000 jobs were
added to the U.S. economy in April.
The S&P 500 (SPX) was 3 points, or 0.2%, higher at
1,866.05.
The Dow Jones Industrial Average (DJI) gained 70 points, or
0.4%, to 16,430.50.
The Nasdaq Composite (RIXF) gave up opening gains and moved 4
points, or 0.1%, lower to 4,072.33.
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action.
In data news, only a report on pending home sales in March at 10
a.m. Eastern Time is likely to get attention. In February, pending
home-sales fell 0.8%, marking an eighth month of declines.
Shares in Charter Communications Inc. (CCMMV) rallied 7.7% on
news that Comcast Corp. (CMCSA) plans to sell nearly four million
extra subscribers in a two-staged deal with Charter Communications
-- representing a consolation prize for Charter's eight-month
pursuit of Time Warner Cable Inc. (TWC). Investors shrugged off
Charter's first-quarter earnings, announcing a net loss of 35 cents
a share on revenue of $2.2 billion, while analysts expected a
profit of 10 cents on revenue of $2.18 billion.
Shares in Comcast and Time Warner rose by 1%.
Franklin Resources Inc. (BEN) reported second-quarter earnings
of 89 cents a share, in line with expectations. Shares fell
0.9%.
After the closing bell, Herbalife (HLF) is expected to report
first-quarter earnings of $1.30 a share on revenue of $1.24
billion.
U.S.-listed shares of AstraZeneca PLC (AZN) leapt 15% after
Pfizer Inc. (PFE) confirmed it has approached the drug maker for a
second time about a takeover valued at nearly $100 billion. Pfizer
said in a statement that the merger would result in a more
efficient tax structure as AstraZeneca's non-U.S. profits wouldn't
be subject to U.S. tax. Pfizer shares were up 2.9%.
Furiex Pharmaceuticals Inc. (FURX) surged 28% after Forest
Laboratories Inc. (FRX) said it will buy the company for $1.1
billion in cash.
In other financial markets, Asian bourses closed mostly lower,
while European stocks posted broad-based gains. Metals were mixed
(GCM4), and oil futures (CLM4) advanced. The dollar weakened
against most other major currencies.
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