US stocks fluctuate near record

The US bourse is set to open higher as European leaders get ready to meet.

The US bourse is set to open higher as European leaders get ready to meet.

Published Jun 23, 2014

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New York - US stocks fluctuated, after the Standard & Poor’s 500 Index closed at a record, as investors considered corporate deals and data showing a manufacturing gauge unexpectedly advanced.

Integrys Energy jumped 15 percent after Wisconsin Energy agreed to pay $5.7 billion for the company.

Micros Systems rose 3.1 percent as Oracle offered to buy it for a $68 a share.

General Electric was little changed after clinching the $17 billion purchase of Alstom SA’s energy assets, its biggest acquisition ever.

The S&P 500 slid 0.1 percent to 1,960.78 at 9:51 a.m. in New York.

The Dow Jones Industrial Average fell 37.82 points, or 0.2 percent, to 16,909.26.

The S&P 500 rose 1.4 percent last week, the most in two months, closing at an all-time high of 1,962.87.

The Dow average also ended the week at a record.

Federal Reserve Chair Janet Yellen said accommodative monetary policy, rising property and equity prices and the improving global economy should lead to above-trend growth.

Yellen emphasised the need to put more Americans back to work and downplayed concerns about asset-price bubbles and incipient inflation.

A Markit Economics report showed a measure of US manufacturing growth rose to 57.5 in June from 56.4 in May.

Economists in a Bloomberg News survey estimated a decline to 56.0.

A reading above 50 signals expansion.

A National Association of Realtors release at 10 a.m. will show that sales of previously-owned US homes climbed to a 4.74 million annualised rate in May from a 4.65 million rate the previous month, according to economist projections.

 

Volatility Index

 

The Chicago Board Options Exchange Volatility Index, the gauge of S&P 500 options prices known as the VIX, rose 3.9 percent to 11.27.

The measure is trading near its lowest level since 2007.

Eight of the 10 main S&P 500 groups retreated today, with phone stocks dropping 0.3 percent to pace declines.

Energy shares advanced 0.3 percent.

Integrys Energy soared 15 percent to $70.15. Wisconsin Energy said it will acquire Integrys for $5.7 billion in cash and stock to nearly double its number of customers and increase revenue.

Micros climbed 3.1 percent to $67.83.

Oracle agreed buy the company for about $4.6 billion as chief executive Larry Ellison seeks to reignite slowing growth by adding software for hotels and restaurants.

Oracle added 0.5 percent to $41.04.

GE slipped 0.2 percent to $26.91.

Chief executive Jeffrey Immelt, approaching 13 years on the job, prevailed over a bid from Siemens AG and initial French opposition.

Buying Alstom’s gas-turbine operations and creating joint ventures in the steam turbine, renewable energy and electrical-transmission businesses will help his push to return GE to its industrial roots.

Lululemon Athletica Inc. rose 3.3 percent to $41.56 as the yoga-clothing maker said it is working to improve its product line and improve value for shareholders. - Bloomberg News

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