Major stock averages finish narrowly mixed and in the middle of the
day's trading range. The S&P 500 closes down 0.3%. The DJIA down
0.4%. The tech-heavy Nasdaq ends up 0.2%.
Stocks recovered from earlier sharper losses on back of gains for
healthcare and tech shares. Stocks began a new week under water amid
mostly consolidative selling, but deal activity has been supportive,
renewing confidence in the credit and financial systems.
Skittishness ahead of the Federal Reserve's meeting this week and a
strong move higher by the dollar as G-20 finance ministers prepare to
meet weighed on the S&P 500 and Dow.
Consolidation was largely expected to start the week. The major
stock indexes are up more than 50% over the past six months and the Dow
Jones industrial average is less than 200 points shy of the
psychologically important 10,000 mark, and some analysts believe the
market is getting ahead of itself.
All three major indexes initially moved off their morning lows
after the Conference Board said its index of leading indicators had
risen 0.6% in August. That compared an expected a 0.7% gain. The index
gained 0.9% in July, which was revised upward from a 0.6% gain.
More significantly, the widely watched forecast of future economic
activity showed an increase in August for the fifth consecutive month,
suggesting the economy is growing again. Investors will also get new
data on new and existing home sales, and durable goods orders later
this week.
Traders showed their aversion to risk this morning, nosing up the
battered dollar ahead of this week's Federal Reserve interest-rate
meeting, at which members may begin to lay the groundwork for a loose
policy exit strategy. The Group of 20 top finance ministers are also
meeting.
Technology shares were mostly flat but provided the market with a
base Monday. Dell (
DELL) declined following its $3.9 billion purchase
of Perot Systems (
PER). PER closed up more than 65%. Not all sector
news made the bulls' case. Applied Materials (
AMAT) and Take-Two
Software (
TTWO) were lower after analyst downgrades.
A third straight session for declines sent crude oil futures below $70 a barrel for the first time in a week.
NYSE down 48.22 (0.69%) to 6,968.70.
-DJIA down 41.34 (0.42%) to 9,779.
-S&P 500 down 3.6 (0.3%) to 1,065.
-Nasdaq up 5.2 (0.24%) to 2,138.
GLOBAL SENTIMENT
Hang Seng down 0.70%
Nikkei down 0.70%
FTSE down 0.57%
UPSIDE MOVERS
(+) PER sold to DELL for $3.9 billion.
(+) ACLS gets multiple system order.
(+) RNN inks deal with TEVA.
(+) DCGN discovers four new risk factors for prostate cancer.
(+) INCY reports positive data on psoriasis trial.
(+) NKTR to receive payment from AstraZeneca (AZN).
(+) AMGN reports on Phase 3 trial fro Denosumab.
(+) VRX says epilepsy NDA to go forward in October.
(+) HK selling Permian Basin properties.
(+) LLY reports on positive study article for Alimta in lung cancer.
(+) AEZS reports on positive Phase 1 for cancer study.
(+) INTC rebounds from earlier losses that followed more details in EU antitrust claim.
(+) ALTI files shelf registration.
DOWNSIDE MOVERS
(-) BCRX gets HHS contract.
(-) IPXL reports positive data on Parkinson's trial.
(-) MO gets downgraded.
(-) EMC gets downgraded.
(-) LEN loss widens, expects return to profitability in fiscal 2010.
(-) BUSE selling shares.
(-) RPRX gets Nasdaq delisting notice.
(-) DPTR reports drilling activity curtailed.
