By Kate Gibson
NEW YORK (MarketWatch) -- U.S. stocks tallied mild losses on
Monday as investors took a break after a four-week winning
stretch.
"It is normal to see periodic short-term market pullbacks after
extended rallies," noted Fred Dickson, chief investment strategist
at Davidson Cos.
But, "the stock market remains reasonably valued, especially
when compared to the ultra-low interest rates seen in the bond
market," added Dickson, who calculates equities are trading at 12
times estimated 2011 S&P 500 operating earnings.
On pace for its best September performance since 1939, the Dow
Jones Industrial Average (DJI) slid 6.10 points, or less than 0.1%,
to 10,854.88.
Two-thirds of the Dow's 30 components were lower, with aluminium
giant Alcoa Inc. (AA) falling the most, off 1.2%. Hewlett-Packard
Co. (HPQ) gained the most, with shares of the technology firm up
1.3%.
The Standard & Poor's 500 Index (SPX) was off 2.7 points, or
0.2%, to 1,146, with health-care shares weighing the most.
The Nasdaq Composite Index (RIXF) declined 6.64 points, or 0.3%,
to 2,374.49.
Declining stocks barely outpaced those advancing on the New York
Stock Exchange, where 208 million shares traded as of 10:45 a.m.
Eastern.
Wall Street's modest retreat came along with another round of
deal-making in the airline, consumer products and retail
sectors.
Southwest Airlines Co. (LUV) said it would acquire AirTran
Holdings Inc. (AAI) for about $1.4 billion. Consumer-products maker
Unilever NV (UN) agreed to purchase beauty-products maker Alberto
Culver Co. for $3.7 billion and Wal-Mart Stores Inc. (WMT) offered
to pay nearly $4.3 billion for South African distributor Massmart
Holdings Inc. (MMRTY)
Shares of M&T Bank Corp. fell on reports the company's
merger talks with Banco Santander SA had derailed.