By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fluctuated after reports
on U.S. service-sector activity, which was lower than expected, and
factory orders, which saw a higher-than-anticipated increase.
The Dow Jones Industrial Average pared gains and was 5 points
higher at 16,473.11. The S&P 500 was down less than a point at
1,831.30. The Nasdaq Composite lost 13 points, or 0.4%, to
4,112.12, sunk by its biggest component Apple Inc.
The Institute for Supply Management said Monday its services
index for December decelerated to 53% from 53.9% in November.
Economists polled by MarketWatch expected a 55% reading. Orders for
goods produced in U.S. factories jumped 1.8% in November, led by
orders for durable goods, the Commerce Department reported Monday.
Economists surveyed by MarketWatch expected orders to rise by
1.6%.
Last week, the ISM manufacturing data showed that the increase
in new orders last month was the largest in more than
two-and-a-half years, while manufacturing employment
accelerated.
The overall improving economy, along with falling unemployment
rates and an improving housing market, last month prompted the
Federal Reserve to begin tapering its monthly asset-buying program
by $10 billion to $75 billion last month.
The changing of the guard at the Federal Reserve is expected to
be finalized Monday, with the U.S. Senate set to vote on the
nomination of Janet Yellen, currently the Fed's vice chair, to lead
the central bank.
Boeing Co. (BA) pared earlier gains and was 0.7% higher. Late
Friday, Boeing's largest union voted to accept a new contract that
will keep manufacturing for the planned 777X and its wings in
Washington state. Analysts at Bernstein Research reiterated the
stock's outperform rating and raised the target price to $165 from
$156, noting that under the terms of the new agreement there will
be no strikes for the next ten years.
Shares in SolarCity Corp. (SCTY) soared 12.4% after analysts at
Goldman Sachs upgraded the stock to buy. Analysts at Goldman Sachs
also downgraded First Solar, Inc. (FSLR) from buy to sell, sending
shares down 8.5%.
Twitter Inc. (TWTR) shares dropped 7.3% after Morgan Stanley cut
shares of the social media company to underweight from
equal-weight, with a price target of $33. "As competition for
online ad dollars intensifies, we guide investors to Google and
Facebook, dominant platforms with more attractive risk/reward,"
Analyst Scott Devitt wrote.
Sirius XM Holdings Inc. (SIRI) shares soared late on Friday and
continue to rise on Monday, trading up 6.6% after Liberty Media
offered to buy the satellite radio company in a stock swap that
would value the company at $3.68 a share. Liberty already holds a
52% stake in Sirius.
Shares in Apple Inc. (AAPL) were down 0.8%, after losing 2.2% on
Friday in the wake of a rating downgrade. The heaviest-weighted
component of the Nasdaq Composite dragged the index down.
The battle among the men's clothing retailers continued Monday,
as Men's Wearhouse Inc. (MW) said it began a cash tender offer
worth roughly $1.6 billion, in which it would buy Jos. A. Bank
Clothiers Inc. (JOSB) shares from current holders at $57.50 a
piece. The two clothiers have been exchanging buyout offers for
months.
Jos. A. Bank shares were up 4.4% while Men's Wearhouse was up
4.3%.
Asian stocks ended lower after a rising yen hit Japanese
equities and concerns over new listings weighed on Chinese stocks.
Europe stocks were mixed.
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Men's Wearhouse offers $1.6 bln for Jos. A. Bank
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