Stocks are mostly on the downside in mid-morning trading on Monday, as apprehension over the direction of the economy have traders reducing their exposure to risk ahead of key jobs data due out later this week. The major averages are all in negative territory, although by relatively modest margins.
The Dow is currently down 47.49 points or 0.5 percent at 10,103.16, the Nasdaq is down 9.44 points or 0.4 percent at 2,144.19 and the S&P 500 is down 4.75 points or 0.5 percent at 1,059.84.
Before the start of trading this morning, the Commerce Department released a report showing that personal spending increased by 0.4 percent in July after coming in unchanged in June. The increase came in just above the economist expectations, who had forecast spending to increase by about 0.3 percent.
The report also showed that personal income rose by 0.2 percent in July after coming in unchanged in the previous month. Personal income had been expected to rise by 0.2 percent.
In M&A news, Intel (INTC) announced its intent to buy Infineon Technologies' (IFX) wireless chip unit for about $1.4 billion in cash. The move comes after Intel recently negotiated an agreement to buy security software maker McAfee (MFE).
Diversified technology company 3M Co. (MMM) also entered an agreement to acquire biometrics specialist Cogent, Inc. (COGT) for $10.50 per share in a deal worth $943 million.
Meanwhile, Sanofi-Aventis' (SNY) $18.5 billion bid for Genzyme (GENZ) was rejected, with Genzyme's board stating the bid "dramatically undervalues the company".
Electronic storage firm 3PAR Inc. (PAR) said that Hewlett-Packard's (HPQ) $2 billion or $30 per share offer was a "superior proposal," while Dell Inc (DELL) is mulling a response to HP's latest tender.
Hewlett-Packard also revealed that its board of directors has approved the authorization of an additional $10 billion for share repurchases.
Overseas, the Bank of Japan announced an extension of its monetary easing policy, looking to prop up the sluggish economic recovery and fight the recent surge by the yen, which has been detrimental to its exports.
Sector News
Banking stocks are among the morning's worst performers, dragging the KBW Bank Index down by 1.5 percent. The index is giving back some ground after jumping sharply on Friday, although it remains off the eight-month closing low it set last Thursday.
Steel stocks are also under pressure, with the NYSE Arca Steel Index posting a loss of 1 percent. Despite the drop, the index is offsetting only a part of Friday's strong upside and remains rangebound.
Gold, housing and semiconductor stocks are also markedly lower, while some gains among airline and computer hardware are helping to limit the pullback by the major averages.
Stocks Driven By Analyst Comments
Texas Instruments (TXN) is trading lower after being downgraded at Susquehanna to Neutral from Positive. The stock has lost 2.4 percent and is on pace for a fresh seven-week closing low.
Lockheed Martin (LMT) is also under pressure after analysts at Argus lowered their rating on the stock from Buy to Hold. Shares are currently down by 1.2 percent and are on target for a ten-month closing low.
On the other hand, CSG Systems (CSGS) is on the upside after Oppenheimer raised its rating on the stock from Perform to Outperform. The stock is up by 2.9 percent and has set a three-week intraday high.
Other Markets
Overseas, stock markets in the Asia-Pacific region ended on the upside Monday. Japan's benchmark Nikkei 225 Index gained 1.8 percent, while Hong Kong's Hang Seng Index advanced by 0.7 percent.
Meanwhile, the major European markets are seeing moderate losses. The French CAC 40 Index and the German DAX are down by 0.6 percent and 0.4 percent, respectively, while the U.K.'s FTSE 100 Index is closed on the day.
In the bond markets, treasuries are notably higher amid the day's risk aversion. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 2.578 percent, posting a loss of 7.4 basis points.
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