Reported Earlier:
U.S. Stocks Mixed in Quiet Start to Week
By Chris Dieterich and Alexandra Scaggs
NEW YORK--Stocks made a quiet start following a week of volatile
trading, as investors weighed the likelihood of additional stimulus
measures from central bankers.
The Dow Jones Industrial Average added 26 points, or 0.2%, to 13103 in
early trading Monday. On Friday, the Dow jumped over 13000 for the
time since May 7, capping its biggest three-day point gain this year.
The Standard & Poor's 500-stock index rose 2 points, or 0.2%, to 1388.
The Nasdaq Composite Index fell 2 points, or 0.07%, to 2956.
Technology stocks were at the front of Monday's advance, with Cisco
Systems adding 2.3% to lead the Dow industrials higher.
On the economic calendar, a reading of manufacturing activity in the
Dallas region in July came in at negative 13.2, a steep drop from the
previous month's measure of 5.8.
European markets rose, with the Stoxx Europe 600 up 1.3%, as
expectations of new stimulus measures there overshadowed the weak
economic data. Jean-Claude Juncker, head of the Eurogroup of euro-zone
finance ministers, said in an interview with French newspaper Le
Figaro over the weekend that euro-zone governments, the European
Central Bank and the European Financial Stability Facility will
coordinate action to help ameliorate the region's debt crisis. Spain's
IBEX-35 index climbed 1.9%.
Treasury Secretary Timothy Geithner is set to meet with ECB President
Mario Draghi and German Finance Minister Wolfgang Schaeuble, as
euro-zone policy makers seek to put together a package of initiatives
that would reassure bond investors ahead of its Thursday meeting.
"There is some hesitation ahead of the [ECB] meeting," said Randy
Frederick, managing director of trading and derivatives with Charles
Schwab. "Markets move on anticipation," but if the commitment pledged
by Mr. Draghi last week "turns out to be less substantive, we could
see the markets pull back a little bit."
Business and consumer confidence in the euro zone fell in July from
June, with a significant weakening evident in France and Germany,
according to a survey from the European Commission. A reading on
Spain's second-quarter gross domestic product fell 0.4% from the first
quarter, its third quarterly contraction in a row. In the U.K.,
mortgage lending fell in June to the lowest level since December 2010.
Asian markets were mostly higher, with Japan's Nikkei Stock Average
rising 0.8% and Australia's S&P/ASX 200 gaining 0.9%. But China's
Shanghai Composite fell 0.9% to close at the lowest level seen since
March 2009.
Crude-oil futures eased 0.1% to $90.06 a barrel, while gold futures
ticked up 0.1% to $1,618.90 a troy ounce. The U.S. dollar rose against
the euro but fell against the yen. The yield on benchmark 10-year U.S.
Treasury bonds fell to 1.534% as demand rose.
In corporate news, shares of AT&T advanced 1.2% after the blue-chip
telecom company said it increased its stock repurchase program by 300
million shares, which represents about 5% of the company's shares
outstanding.
Diebold sank 12% after the producer of automatic-teller-machines
lowered its full-year guidance after reporting that second-quarter
earnings jumped 27%.
In deal news, Shaw Group soared 58% after the engineering and
construction company agreed to be acquired by Chicago Bridge & Iron in
a deal valued at $3 billion. Shares of Chicago Bridge & Iron slid 14%.
Roper Industries jumped 7.7%, and was the biggest gainer on the S&P
500, after posting second-quarter profits that rose 8%, and agreeing
to buy Sunquest Information Systems for about $1.4 billion.
Progenics Pharmaceuticals tumbled 49% after the company and Salix
Pharmaceuticals said the Food and Drug Administration requested
additional clinical data following a review of its constipation
treatment. Salix shares slid 12%.
Exelixis edged up 3% after the company said the accepted the new drug
application for its thyroid cancer treatment was granted priority
review designation by the FDA.
Write to Chris Dieterich at chris.dieterich@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
July 30, 2012 06:55 ET (10:55 GMT)
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