US stocks finish higher ahead of Fed meeting
US stocks Monday finished a choppy day of trade slightly higher as investors weighed the Iraq crisis and merger news ahead of a US Federal Reserve policy decision Wednesday. AP
NEW YORK–US stocks Monday finished a choppy day of trade slightly higher as investors weighed the Iraq crisis and merger news ahead of a US Federal Reserve policy decision Wednesday.
The Dow Jones Industrial Average added 5.27 points (0.03 percent) at 16,781.01.
The broad-based S&P 500 advanced 1.62 (0.08 percent) to 1,937.78, while the tech-rich Nasdaq Composite Index gained 10.45 (0.24 percent) to 4,321.11.
In Iraq, militants battled Iraqi security forces for control of a strategic northern town, while US officials weighed drone strikes against jihadist fighters leading the charge.
Officials said US and Iranian diplomats could discuss cooperating on Iraq on the sidelines of nuclear talks in Vienna.
Article continues after this advertisementMeanwhile, companies in the pharmaceuticals, telecommunications, data storage and energy sectors announced transactions Monday and over the weekend.
Article continues after this advertisementDavid Levy, portfolio manager at Kenjol Capital Management, said investors are looking to the conclusion of the Fed policy meeting Wednesday, at which officials could discuss when to raise benchmark interest rates.
“The market is more or less waiting for the Fed as geopolitical and macroeconomic data come to the forefront this week,” he said.
US medical-device maker Medtronic will buy its Irish-based competitor Covidien for $42.9 billion in a deal that will expand Medtronic’s product offerings and enable it to pay lower taxes by shifting its headquarters to Ireland.
Medtronic dropped 1.1 percent, while Covidien surged 20.5 percent.
US telecom operator Level 3 Communications plans to buy Internet business provider TW Telecom in a deal worth $7.3 billion, a deal that bolsters its holdings in North America. Level 3 dropped 4.1 percent, while TW Telecom rose 7.3 percent.
Pipeline giant Williams Companies jumped 18.7 percent after announcing it would buy the remaining 50 percent interest in Access Midstream Partners, giving it 100 percent of the asset. Williams said the deal would give it major stakes in big shale oil and gas assets. Williams will also boost its dividend 32 percent. Access Midstream Partners tacked on 1.9 percent.
US data storage company SanDisk plans to buy flash memory firm Fusion-io for $1.6 billion. SanDisk advanced 3.6 percent while Fusion-io surged 22.4 percent higher.
Speech-recognition software developer Nuance Communications jumped 9.7 percent following a report it has held talks about being acquired.
Bond prices were mixed. The yield on the 10-year US Treasury held steady at 2.60 percent, the same level as Friday, while the 30-year slipped to 3.40 percent from 3.41 percent. Bond prices and yields move inversely.
