Skip to content
Business
Link copied to clipboard

Stocks eke out small gains after drifting most of the day

U.S. stocks eked out tiny gains Monday. Major stock indexes barely budged as investors took in stride the election of Syriza - a Greek political party that has called for the elimination of some of that nation's rescue loans. Market players also weighed the latest batch of corporate earnings.

Alexis Tsipras , Greece's new anti-austerityprime minister, waves to supporters in Athens. On his first day in office, the 40-year-olddid much differently. Story, A6. Bloomberg
Alexis Tsipras , Greece's new anti-austerityprime minister, waves to supporters in Athens. On his first day in office, the 40-year-olddid much differently. Story, A6. BloombergRead more
    by Alex Veiga, Associated Press, Inquirer
    Published 

U.S. stocks eked out tiny gains Monday.

Major stock indexes barely budged as investors took in stride the election of Syriza - a Greek political party that has called for the elimination of some of that nation's rescue loans. Market players also weighed the latest batch of corporate earnings.

Traders welcomed news of several corporate mergers, including an $11 billion deal between reinsurers Axis Capital Holdings and PartnerRe.

The market also brushed off concerns of a major blizzard set to descend over the Northeastern United States. The stock exchanges were expected to open for business as usual on Tuesday.

The Dow Jones industrial average added 6.10 points, or 0.03 percent, to 17,678.70. The Standard & Poor's 500 gained 5.27 points, or 0.26 percent, to 2,057.09. The Nasdaq composite rose 13.88 points, or 0.29 percent, to 4,771.76.

European markets' initial reaction to the election victory by Greece's Syriza party was positive, sending Germany's DAX up 1.4 percent, while the CAC-40 in France rose 0.7 percent. The main stock market in Greece recouped some of its early losses to end 3.2 percent lower.

Six of the 10 sectors in the S&P 500 ended higher, and energy companies rose the most. The price of oil fell on continuing expectations of high supplies, but comments from an OPEC official suggested that the recent price plunge might be near an end.

Corporate deals also helped push some stocks sharply higher Monday.

Packaging company MeadWestvaco agreed to combine with Rock-Tenn Co. to create a $16 billion company, which will be named before the deal closes. MeadWestvaco jumped 14 percent, to lead all stocks in the S&P 500. The stock gained $6.31 to $51.35. Rock-Tenn vaulted $3.86, or 6.1 percent, to $66.85.

Post Holdings jumped 18 percent on news that the company had agreed to acquire privately held MOM Brands in a deal that involves $1.05 billion in cash and nearly 2.5 million shares of stock. MOM's products include cereals, and hot wheat and oatmeal products. Post shares gained $7.39 to $48.83.

Investors also cheered the combination of Axis Capital and PartnerRe, lifting Axis shares $2.81, or 5.7 percent, to $52.14. PartnerRe gained $1.36, or 1.2 percent, to $115.50.

Benchmark U.S. crude fell 44 cents to close at $45.15 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 63 cents to close at $48.16 in London.

Gold fell $13.20 to $1,279.40 an ounce. Wholesale gasoline fell 3.1 cents to close at $1.32 a gallon. Heating oil fell 0.7 cents to close at $1.64 a gallon. Natural gas fell 10.5 cents to close at $2.88 per 1,000 cubic feet.