January 10, 2011 by staff
The Dow Jones industrial average dropped 71.52 points to 11,603.20.
The S & P 500 was down by 5.32 points to 1,266.18. The Nasdaq Composite fell 11.01 points to 2,692.16.
The slump came as investors also digested a host of corporate mergers and ready for the start of the earnings season with Alcoa reporting quarterly financial results after the closing bell.
On Friday, stocks fell after a court ruled against Wells Fargo and U.S. Bancorp, in a case of foreclosure. The decision triggered a selloff in stocks of bank that has affected the entire market.
Final reading by the Government on the labor market has also pulled the market lower. The U.S. economy has created jobs a little less than expected in December, but the unemployment rate was slightly lower than economists had expected.
Sara Lee shares jumped 2.4% in early trading on reports that Apollo Global Management and other private equity firms are looking to acquire the food business.
Chemical manufacturer DuPont said on Sunday its intention to acquire Danisco, a Danish enzyme and food ingredients company, for 5.8 billion U.S. in cash. The shares of DuPont slid 2.7% in early trading.
Progress Energy’s shares were down 0.8% at the opening bell, after Duke Energy has declared its intention to buy the electricity company for 13.7 billion U.S. and others in stock. Duke Energy shares fell 1%.
Standard Microsystems shares fell 4% after the chipmaker announced that Conexant buys rival and 284 million shares of Conexant U.S. jumped 16%.
Playb oy stock has jumped 17% after founder Hugh Hefner has signed an agreement to make its publicly traded company private. Hefner, who already owns a significant amount of shares the adult magazine publisher, has an agreement with Icon and Acquisition Holdings to pay $ 6.15 per share for the part of Playb oy Enterprises that do not have.
Shares of GM rose 0.8% after the plug-in Chevrolet Volt has been named North American Car of the Year at the Auto Show in Detroit. Meanwhile, shares of Ford rose 0.4% after Ford Explorer was voted Truck of the Year.
After the market close, Alcoa will release its quarterly results, the first Dow component to report its fourth quarter figures. The aluminum maker is expected to announce earnings per share of 19 cents, according toanlysts polled by Thomson Reuters. The shares were up 0.3% on Monday.
No major economic report is scheduled for Monday.
The price of benchmark U.S. Treasury 10-year ran, reducing the yield to 3.29% from 3.33% Friday. Treasury prices and yields in opposite directions.
Oil for February delivery gained 60 cents to 88.98 a barrel and U.S.
Gold futures for February delivery raised $ $ 4.20 to 1373.10 an ounce.
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