By Kristina Peterson
NEW YORK (MarketWatch) -- U.S. stocks opened slightly lower on
Monday, as fresh concerns about the European banking system cooled
investors' exuberance after four straight weeks of gains.
Kicking off the final week of the strongest September in 71
years, the Dow Jones Industrial Average (DJI) slipped 13 points, or
0.1%, to 10847, in early trading. On Friday, the Dow index rallied
1.9%, posting its highest close since May 12 and gained 2.4% in the
last week. The Dow is currently on pace to post its best September
performance since 1939.
The Nasdaq Composite (RIXF) shed 0.2% to 2376. The Standard
& Poor's 500-share index (SPX) edged down 0.2% to 1147, weighed
by its health-care and consumer discretionary sectors.
Generating fresh concerns about the health of the European
banking system, the euro weakened after Moody's Investor Service
downgraded the debt of Anglo Irish Bank by three notches because
the bank is expected to require further government support. The
euro was trading recently at $1.3480, down from $1.3493 late Friday
in New York.
The U.S. Dollar strengthened against both the euro and the yen.
Demand for Treasurys increased, with the 10-year note (UST10Y) up,
pushing its yield down to 2.56%.
However, the weekend's round of new deals helped stabilize the
market.
Southwest Airlines (LUV) jumped 2.9% after announcing it will
acquire AirTran Holdings (AAI). The deal values AirTran at around
$1.4 billion, including the firm's convertible notes outstanding.
Shares of AirTran soared 59%.
Retailing giant Wal-Mart Stores (WMT) edged down 0.2% after
making a preliminary, nonbinding proposal to buy Johannesburg-based
Massmart Holdings for $4.6 billion. Meanwhile, Unilever (UN)
announced an agreement to buy U.S.-based Alberto Culver for $3.7
billion in cash, moving to expand its presence in the
hair-conditioning and shampoo market. Shares of Alberto Culver
jumped 20%, while Unilever rose 1.6%.
Among stocks in focus, egg producer Cal-Maine Foods (CALM) rose
0.4% after reporting a return to profitability in the fiscal first
quarter, buoyed by a business-interruption insurance gain.
Crude-oil prices climbed above $77 a barrel, while gold futures
also rose.