(By Balachander) U.S. stocks ended the first trading day of the third quarter on a mixed note after a data showed manufacturing activity in the world's largest economy unexpectedly contracted for the first time since 2009.
S&P 500 Index rose 0.25 percent to finish at 1,365.51. The Dow Jones Industrial Average edged 0.07 percent lower to end at 12,871.39. The Nasdaq Composite Index added 0.55 percent to close at 2,951.23.
On the domestic front, a report from the Institute for Supply Management (ISM) showed the ISM's purchasing managers index declined to 49.7 in June from 53.5 in May, while economists expected a reading of 52.0. A reading below 50 indicates a contraction.
Separate reports showed Europe manufacturing activity shrank for an eleventh consecutive month, while Chinese industrial production hit a seven-month low in June.
On Friday, U.S. stocks closed on a sharply higher note as European leaders' agreement to stimulate the euro zone economy alleviated concerns over the region's debt woes.
Hot Stocks Of The Day: AMLN, BBY, GRPN, AYI, DELL, CELL, LNCR, MU
In corporate news, Amylin Pharmaceuticals Inc. (NASDAQ:AMLN) jumped 8.88 percent after Bristol-Myers Squibb (NYSE:BMY) agreed to acquire the biotechnology company for $31.00 a share in cash or roughly $5.3 billion.
Best Buy Co. Inc. (NYSE:BBY) added 5.92 percent amid reports of takeover talks. The Wall Street Journal reported last week that Best Buy founder Richard Schulze is working with Wall Street bankers to explore taking the consumer electronics retailer private.
Groupon Inc. (NASDAQ:GRPN) dropped 10.54 percent. Susquehanna reduced its price target for the e-commerce marketplace to $12 from $15.
Acuity Brands Inc. (NYSE:AYI) rallied 15.83 percent after provider of lighting fixtures posted third-quarter earnings that beat market expectations.
Dell Inc. (NASDAQ:DELL) fell 1.00 percent. The PC maker agreed to acquire Quest Software Inc. (NASDAQ:QSFT) for $28.00 a share in cash, or around $2.4 billion. QSFT shares inched higher.
Brightpoint Inc. (NASDAQ:CELL) rallied 66.54 percent after the distributor of battery products agreed to be bought for $9.00 per share in cash by Ingram Micro Inc. (NYSE:IM). The deal represents a premium of 1.6 percent to CELL's previous closing price. IM shares added 0.46 percent.
Lincare Holdings Inc. (NASDAQ:LNCR) gained 21.52 percent after Germany's industrial gas producer Linde AG agreed to purchase the provider of home-based respiratory services for roughly $4.6 billion.
Micron Technology Inc. (NASDAQ:MU) rose 3.80 percent after the maker of flash memory products said it will acquire bankrupt Japanese chipmaker Elpida Memory Inc. for 200 billion yen ($2.5 billion) to bolster its mobile portfolio.
European markets extended their rally to close in green. Germany's DAX advanced 1.24 percent to close at 6,496.08. France's CAC40 added 1.36 percent to finish at 3,240.20. U.K.'s FTSE 100 jumped 1.25 percent to end at 5,640.64.
Among Asian markets, China's Shanghai Stock Exchange Composite Index inched up 0.03 percent to close at 2,226.11. Japan's Nikkei 225 edged 0.04 percent lower to end at 9,003.48. India's BSE Sensex finished at 17,398.98, down 0.18 percent. Hong Kong's Hang Seng Index was closed for a holiday.
Commodity & Currency Scan:
Crude oil futures retreated 1.75 percent to $83.470 per barrel, while natural gas futures rose 0.46 percent to $2.837 per million metric British thermal units. Gold futures fell 0.30 percent to $1,599.40 per ounce and silver futures dropped 0.32 percent to $27.525 per ounce.
In the currency market, the euro slipped 0.61 percent against the U.S. dollar to 1.2589. The British pound inched up 0.04 percent against the greenback to 1.5714, and the dollar dipped 0.35 percent against the Japanese yen to 79.5100.