By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market moved decidedly
lower Monday as excitement from a flurry of deal news, including
the takeover of Family Dollar Stores Inc. by Dollar Tree Inc.
proved unsustainable in light of weak housing data.
Sales of existing home in June fell, marking the first decline
in four months. Later this week, the pace of data speeds up as
investors will get second-quarter gross domestic product, a Fed
decision and July payrolls among other economic items of
importance. Get ready for 48 hours of economic fury
The S&P 500 (SPX) declined by 8.6 points, or 0.5%, to
1,969.18. The Dow Jones Industrial Average (DJI) dropped 75 points,
or 0.4%, to 16,885.53. The Nasdaq Composite (RIXF) lost 26 points,
or 0.6% to 4,422.94.
Follow MarketWatch's live blog of today's stock-market
action.
Fears of a bubble bursting won't rest, said Joao Monteiro,
analyst at Valutrades. "This story may be looking a little
over-brokered, but with the quiet summer sessions lying ahead, even
just a small shock could be all it takes to precipitate a big
move," he said in a note to clients. Also read: Stock trader who
called three crashes sees 20% collapse
Goldman Sachs on Friday cut its three-month view on global
stocks to neutral, over concerns a temporary bond selloff could hit
equities.
Mid-July, Goldman raised its year-end target for the S&P 500
index to 2,050 from 1,900, making the investment bank one of the
most bullish on Wall Street.
"Merger Monday" began with a deal in the retail industry. Family
Dollar Stores(FDO), soared 22% after Dollar Tree (DLTR) said it
would buy the rival discount retailer for $74.50 a share, a roughly
23% premium over Family Dollar's closing price on Friday. Dollar
Tree shares were up around 7.6%. Rival Dollar General Corp.(DG)
fell 2.1%.
Shares in Zillow Inc (ZILLOW.XX) fell 3.5% after the real-estate
website said it is buying a rival Trulia Inc.(TRLA) for $3.5
billion in stock. Trulia jumped 12%.
El Pollo Loco Holdings Inc. (LOCO) surged 15%. The Mexican
fast-food chain soared 60% in its Nasdaq debut on Friday.
Among Monday's earnings reports, Tyson Foods (TSN) posted
earnings that missed Wall Street views, although revenue topped
forecasts. Tyson shares rose 4%.
Herbalife Ltd. (HLF) will report after the close on Monday.
Follow more of the day's notable movers here.
Across other markets, Hong Kong's Hang Seng Index closed at
highs not seen in more than three years on Monday, after reports
that a plan to allow direct stock trading between Hong Kong and
Shanghai could be launched mid-October. European stocks had trouble
making headway as U.S. stock futures leaned south.
Oil prices (CLU4) pushed lower, while gold (GCU4) was a touch
higher, and the U.S. dollar index(DXY), which measures the
greenback against a basket of six other currencies, was largely
steady.
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