NEW YORK (TheStreet) -- U.S. stocks recovered from session lows on Monday as several high-profile deals were confirmed. Global markets fell earlier on news that Japan had fallen into recession again in the third quarter.
The Dow Jones Industrial Average added 0.1% and the S&P 500 inched 0.08% higher. The Nasdaq slipped 0.06%.
Oilfield services provider Baker Hughes (BHI) was the best performer on the S&P 500 after Halliburton (HAL) agreed to purchase it for $34.6 billion. Baker Hughes surged 12.5%, while Halliburton shares dropped 7%.
Hasbro (HAS) shares spiked more than 4% after preliminary talks to purchase DreamWorks (DWA) fell through. Investors were concerned a deal worth an estimated $30 a share was too high a price tag for the animation studio. DreamWorks tumbled 13.3%.
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Third-quarter GDP in Japan, the world's third-largest economy, fell 1.6% after a 7.1% dive the previous quarter. Economists had expected growth as high as 2.1% from the year earlier. The unexpected contraction may push Prime Minister Shinzo Abe to delay a unpopular planned sales tax increase.
"An economic collapse and a sovereign debt default on the world's third-largest economy will contain massive economic ramifications on a global scale," said economist Michael Pento in a note. "China, Europe and the U.S. will also soon face the consequences."
Japan's Nikkei tanked nearly 3% following a record run of seven-year highs after the Bank of Japan announced new stimulus measures in October. Hong Kong's Hang Seng and China's Shanghai Composite also tumbled, while European markets, which have been hit with recessionary fears of their own, were mixed.
Though nowhere near as dire as Japan, data from the U.S. on Monday wasn't as sunny as expected. Industrial production fell unexpectedly in October, its second fall in three months, according to Federal Reserve data. A 0.2% increase was expected. The Empire State manufacturing index, a survey of New York State manufacturers, recovered from a six-month low in October, recording a reading of 10.16 in November, though less than a forecast reading of 11.
Stocks closed mixed on Friday, though managed to eke out a fourth consecutive week of gains. The Dow closed lower and the S&P barely higher as investors measured better-than-expected retail sales against worries that European economic woes would continue to drag on global growth.
--Written by Keris Alison Lahiff in New York.