By William L. Watts, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks opened on a weak note
Monday, with investors looking ahead to this week's key data and a
meeting of Federal Reserve policy makers, while a round of deal
making moved stocks including retailer Saks Inc., drugmaker Perrigo
Co. and advertising firm Omnicom Group Inc.
The S&P 500 Index (SPX) fell 2.5 points, or 0.1%, to
1,689.15, while the Dow Jones Industrial Average (DJI) dropped 15.9
points to 15,547.93. The Nasdaq Composite (RIXF) edged up 4.4
points, or 0.1%, to 3,617.57.
Shares of Dow component Boeing Co. (BA) slumped 1.1% in early
action. The U.S. Federal Aviation Administration has proposed a
$2.75 million civil penalty against the aerospace company, saying
it failed to correct a problem with fasteners on its 777 airplanes
for more than two years after its discovery in 2008.
United Technologies Corp. (UTX) and General Electric Co. (GE)
were also lower, dragging on the Dow industrials.
Pending-home-sales data is set for release at 10 a.m. Eastern
Time, but analysts said investors may already be looking ahead to
the conclusion of this week's meeting of Federal Reserve policy
makers on Wednesday and the release Friday of nonfarm payrolls data
for July.
It wasn't quite a "merger Monday," but some deal news was
jostling individual stocks. Shares of Saks Inc. (SKS) rose more
than 3% after the retailer agreed to be acquired by Hudson's Bay
Co. in a $2.4 billion, all-cash deal.
Shares of Elan Corp.(ELN) rose nearly 7% after Perrigo (PRGO)
said it would use a combination of cash and stock to buy Elan for
$16.50 a share, which is a 10.5% premium over Elan's closing price
Friday. Perrigo shares dropped 3.4%.
Shares of Hertz Global Holdings Inc. (HTZ) dropped nearly 5%.
The car-rental firm reported a 31% rise in second-quarter profits,
earning 45 cents a share when excluding one-time items. A survey of
analysts found a consensus forecast for earnings of 45 cents. See:
Anadarko, Express Scripts in focus Monday.
Shares of Omnicon Group Inc. (OMC) jumped more than 7% after it
and Publicis Groupe SA said Sunday that they will merge in the
biggest advertising industry deal in history.
Simon Property Group Inc. (SPG) said Monday that second-quarter
earnings rose 58%. The nation's largest shopping-mall operator
logged higher funds from operations to beat analyst estimates and
boosted its full-year outlook. Shares rose slightly.
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