Blue Chips Tick Lower in Early Trading
Updated from 9:24 a.m. EDT
Stocks in New York were easing early Monday as a slight rise in crude oil prices spurred equity buyers to take a break following the rally that ended last week.
The
Dow Jones Industrial Average
was down 30 points at 11,704, and the
S&P 500
was off 3 points at 1294. The
Nasdaq
was losing 2 points to 2412.
On Friday, U.S. stocks soared as oil continued its recent downtrend, falling 4% and settling at $115.20 a barrel. The Dow surged 302.89 points, or 2.7%, to 11,734.32, and the S&P 500 climbed 30.25 points, or 2.4%, to 1296.31. The Nasdaq was stronger by 58.37 points, or 2.5%, at 2414.10.
As the new week arrived, crude edged higher by 45 cents to $115.65 a barrel as traders kept an eye on the widening military conflict between Russia and Georgia.
Turning to the corporate side,
Verizon
(VZ) - Get Verizon Communications Inc. Report
, one of the 30 Dow industrials, reached new contracts with two unions and avoided a threatened strike. The company signed tentative three-year deals with the Communications Workers of America and the International Brotherhood of Electrical Workers, which together represent more than 60,000 workers.
Meanwhile, several pieces of merger news were making headlines. A report from the U.K. said that package carrier
TheStreet Recommends
UPS
(UPS) - Get United Parcel Service, Inc. Class B Report
was mulling a $15 billion bid for Dutch rival TNT, but UPS subsequently downplayed the speculation.
Elsewhere, garbage hauler
Waste Management
( WMI) lifted its takeover offer for
Republic Services
(RSG) - Get Republic Services, Inc. Report
to $6.73 billion. Republic rejected an earlier proposal, and it has been planning to merge with
Allied Waste
( AW).
In the technology arena,
JDA Software
( JDAS) signed a pact to buy
i2 Technologies
( ITWO) in a deal being valued at nearly $350 million.
As for analyst actions, Citigroup upgraded
Emulex
(ELX)
to buy from sell and lifted its rating on
Qwest Communications
(Q)
to buy from hold.
Solar stocks could be in focus after UBS cut its estimates for 13 names in the group. Among its moves,
SunPower
(SPWR) - Get SunPower Corporation Report
was downgraded to neutral, while
Energy Conversion Devices
( ENER) was raised to buy.
Around the globe, markets were mostly higher. Major European indices were green across the board, while in Asia, Hong Kong's Hang Seng ticked lower.
Longer-dated Treasury securities slipped. The 10-year was down 2/32 in price, yielding 3.94%, and the 30-year was losing 6/32 to yield 4.55%. The dollar was weaker against its primary competitors, with the exception of the euro.
This article was written by a staff member of TheStreet.com.
