By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market edged higher on
Monday, building on gains from the previous week that sent the
S&P 500 and Dow Jones Industrial Average to record levels.
M&A deals between Tyson Foods Inc. and Hillshire Brands Co.;
Analog Devices Inc. and Hittite Microwave Corp.; and Merck &
Co. and Indenix Pharmaceuticals Inc. added to optimism on Wall
Street.
The S&P 500 (SPX) was 2 points, 0.1%, higher at 1,951.45,
hitting an intraday record shortly after the open.
The Dow Jones Industrial Average (DJI) rose 18 points, or 0.1%,
to 16,941.30, also touching an intraday higher.
The Nasdaq Composite (RIXF) gained 5 points, or 0.1%, to
4,326.59.
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action.
There was no economic data set for release Monday, however, two
Federal Reserve officials were scheduled to speak. James Bullard,
the president of the St. Louis Fed, speaking Monday morning, said
there was evidence that inflation is now "moving higher." This is a
significant shift in Bullard's outlook; only last month he said
that inflation was stable and any uptick in price levels was just a
forecast.
Boston Fed President Eric Rosengren, a nonvoting member of the
policy committee, will speak at the central bank of Guatemala in
Guatemala City at 1:30 p.m. Eastern Time.
In deal news, Tyson Foods (TSN) confirmed on Monday that it will
buy Hillshire Brands Co.(HSH) for $8.55 billion in cash. Tyson has
been battling rival Pilgrim's Pride Corp. (PPC) in a protracted war
for Hillshire. Tyson shares fell 2.2%, while Hillshire was up 4.8%.
Shares in Pilgrim's Pride fell 5.2%.
Chip maker Analog Devices Inc. (ADI)said Monday that it will buy
Hittite Microwave Corp.(HITT) for $78 per share in cash. Hittite is
a designer and manufacturer of integrated circuits, modules and
instruments for radio frequency. Hittite shares soared 28%. Shares
in Analog Devices rose 5.7%.
Merck & Co. Inc.(MRK) said it will buy Idenix
Pharmaceuticals Inc.(IDIX) for $24.50 a share. The Merck buyout
values Idenix at $3.85 billion, and Idenix shares more that tripled
on the news.
On Monday Apple Inc. (AAPL) shares began trading for the first
day following a 7-for-1 stock split. Experts say the seemingly
cheaper stock price could attract a new generation of
Apple-obsessed investors. On Monday, shares were marginally higher
at $92.41.
Family Dollar Stores Inc. (FDO) rose 15% after billionaire
investor Carl Icahn on Friday disclosed a 9.4% stake in the
cut-price retailer late Friday. Rival retailer Dollar General Corp.
(DG) rose 11%.
In overseas markets, European stocks were higher, while the Hong
Kong Hang Seng Index stood out as a big gainer, taking a cue from
Friday's U.S. rally. China posted a 7% rise in exports on the year
Sunday, but a report out Friday showed a dramatic cooling from the
country's property market, with land-sales plunging 45% from a year
ago.
Gold for August delivery (GCQ4) posted gains, along with July
crude oil (CLN4), while the dollar (DXY) pushed largely higher.
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