By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stock inched lower after the
market opened on Monday as investors await reports on U.S.
service-sector activity and factory orders.
The Dow Jones Industrial Average opened 56 points, or 0.3%
higher at 16,526.85. The S&P 500 began the week 5 points, or
0.3% higher at 1,836.56. The Nasdaq Composite was 2 points, or
0.1%, up to 4,134.23 at the open.
At 10 a.m. Eastern, the Institute for Supply Management's
non-manufacturing purchasing managers' survey for December is
expected to come in at 55%, according to a . Factory orders for
November are also due at 10 a.m., with the consensus forecast
pointing to 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 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) rose 1.4%, leading the Dow average. 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 11.2% after analysts at
Goldman Sachs upgraded the stock to buy.
Twitter Inc. (TWTR) shares dropped 5.3% 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 6.4% 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 1%, 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 and
limited gains on the S&P 500.
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 4.1% while Men's Wearhouse was up
1.7%.
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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