By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market reversed opening
losses and edged higher on Monday as upbeat economic reports and
deal news outweighed concerns about rising violence in Iraq.
Better-than-expected manufacturing reports and housing data as
well as a flurry of deal news lifted the main benchmarks off
opening losses. Limiting gains were concerns about a worsening
situation in Iraq. Over the weekend, militants in Iraq tweeted out
images supporting a claim they had executed hundreds of Shiite
Iraqi soldiers. The killings were not verified.
The S&P 500 (SPX) added 2 points, or 0.1%, to 1,938.33. The
Nasdaq Composite (RIXF) rose 8 points, or 0.2%, to 4,318.71, helped
by a 1% gain in Apple Inc. (AAPL), its biggest component.
The Dow Jones Industrial Average (DJI) ticked up 5 points to
16,782.04.
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action.
Fresh data from the factory sector showed that manufacturing
remained a bright spot in the U.S. economy at the end of the second
quarter.
Manufacturing activity in the New York region held steady in
June after hitting an almost four-year- high in May, the Federal
Reserve Bank of New York said Monday.
Industrial production bounced back in May after a drop in April
that wasn't as bad as initially estimated.
Home builders' confidence rose in June to the highest level in
five months, but respondents were still a bit pessimistic,
according to the National Association of Home Builders/Wells Fargo
housing-market index released Monday.
Merger Monday
Medtronic Inc. (MDT) announced Sunday that it plans to buy
Ireland-based Covidien PLC (COV) in a $42.9 billion deal. The
cash-and-stock offer would be valued at $93.22 per Covidien share.
Shares of Covidien soared 22%, while Medtronic fell 1%. Medtronic,
big health companies look to dodge U.S. taxes
Shares of Bluebird Bio Inc. (BLUE) soared 41% after the company
reported promising preliminary data on experimental gene therapy
for patients with inherited blood disorders.
Level 3 Communications Inc. (LVLT) shares dropped 6% after the
company said Monday it agreed to acquire TW Telecom Inc. (TWTC) in
a deal worth about $7.3 billion, including the assumption of $1.6
billion in debt. Level 3 said it secured committed financing valued
at $3 billion.
TW Telecom shares increased 7%.
Fusion-io Inc. (FIO) shares surged 23% after SanDisk Corp.
(SNDK) on Monday agreed to buy Fusion-io in an , or $11.25 a
share.
Yahoo Inc. (YHOO) dropped 5% after Chinese Internet company
Alibaba reported slowing revenue growth for the year. Yahoo owns
24% of Alibaba.
In other markets, European stocks fell after a weekend of
increasing violence in Iraq. Japanese stocks fell in a mixed
session for Asia as Iraq worries pushed the Japanese yen (USDJPY)
higher against the dollar.
The British pound tapped $1.70 against the dollar and traded at
a nearly five-year high on speculation the Bank of England could be
one of the first major central banks to break away from ultra-easy
monetary policy.
Oil prices (CLN4) pulled back from stronger, earlier gains,
while gold(GCQ4) was higher.
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