By Chris Dieterich and Alexandra Scaggs
NEW YORK--Stocks started the week in lackluster fashion, with
the Dow inching lower and the S&P 500 eking out a narrow gain,
as investors cited lingering concerns about U.S. fiscal issues of
the market's lack of direction.
The Dow Jones Industrial Average fell 0.23 point, or less than
0.1%, to 12815.16. Last week, blue chips posted their
third-straight weekly decline and their biggest weekly percentage
drop in more than five months.
The Standard & Poor's 500-stock index rose 0.15 point, or
less than 0.1%, to close at 1380.00. The Nasdaq Composite Index
slid 0.61 point, or less than 0.1%, to 2904.26.
Shares of Jefferies Group rallied 14% after the securities firm
said it was being acquired by Leucadia National, a financial
conglomerate that already owned a 29% stake in Jefferies. Leucadia
shares fell 3%.
Titanium Metals soared 43% after the company agreed to be
acquired by cast-metal parts maker Precision Castparts for
approximately $2.9 billion in cash late Friday. Precision
Castparts's shares rose 4.9%.
Investors said the markets will likely continue to pivot on news
surrounding the series of tax increases and spending cuts set to go
into effect at the end of this year.
On Friday, President Barack Obama reiterated that any deal would
have to result in wealthy Americans paying more in taxes. Mr. Obama
is slated to meet with Congressional leaders Friday to discuss
fiscal issues.
"The only conversation we're having with clients, now that
earnings season is mostly over, is about the fiscal cliff and
election. It's not the minute-to-minute determinant, but it's all
we're talking about," said Dan Greenhaus, chief global strategist
with BTIG.
In Europe, the Stoxx Europe 600 closed 0.3% lower. Greece's
approval of the 2013 budget, which was necessary for the country to
receive its next tranche of bailout funds, helped to support
sentiment early, but the gain failed.
Asian markets were mixed. China's Shanghai Composite rose 0.5%
following news that the trade surplus for October increased more
than expected. Japan's Nikkei Stock Average shed 0.9% in response
to news that the economy contracted 0.9% in the third quarter,
stoking worry that the country may have slipped into recession.
Crude oil futures fell 0.6% to settle at $85.57 a barrel, while
gold futures ended flat at $1,730.30 a troy ounce. The dollar eased
against both the euro and the yen. Bond trading was halted for
Veterans Day.
In other corporate news, Apple edged 0.8% lower after The Wall
Street Journal reported Taiwanese smartphone maker HTC Corp. will
have to pay licensing fees to Apple as part of a settlement of all
outstanding patent disputes between the companies.
D.R. Horton fell 5.8%. The home builder booked strong quarterly
profits and revenue, though they came in below Wall Street's
estimates.
Beazer Homes USA declined 17% after reporting a
wider-than-expected quarterly loss, although revenue rose more than
forecast.
Celgene rose 5.8% after the company's subsidiary in Sweden said
a Phase 3 trial of its treatment for pancreatic cancer met its
primary goal, which will lead the company to submit registration
papers in the U.S, Europe and other markets.
Clovis Oncology tumbled 42% in response to news that the company
will suspend development of its treatment for pancreatic cancers
following disappointing trial results.
Best Buy rose 3.6% after confirming that it has named
Williams-Sonoma retired financial head Sharon McCollam as its new
chief financial officer, effective next month.
Write to Chris Dieterich at christopher.dieterich@dowjones.com
and to Alexandra Scaggs at alexandra.scaggs.com