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U.S. stocks open higher, eyes on Fed stimulus; Dow Jones up 0.09%

Published 04/29/2013, 09:46 AM
Updated 04/29/2013, 09:48 AM
Investing.com - U.S. stocks opened higher on Monday, as markets eyed the release of a U.S. home sales report, while downbeat U.S. economic growth data last week fueled expectations for the Federal Reserve to pursue its stimulus program.

During early U.S. trade, the Dow Jones Industrial Average edged up 0.09%, the S&P 500 index added 0.20%, while the Nasdaq Composite index climbed 0.45%.

Investors’ trimmed back expectations for an earlier-than-expected end to the Fed’s quantitative easing program after data on Friday showed that the U.S. economy grew at a slower than forecast rate in the first quarter, underlining concerns over the outlook for the economic recovery.

Markets were looking ahead to the outcome of the Fed’s upcoming policy meeting on Wednesday for further cues on the direction of monetary policy.

Among pharmaceutical companies, Valeant Pharmaceuticals International surged 3.68% amid reports it is in merger talks with Actavis that have stalled over price.

According to the Wall Street Journal, Valeant is seeking to acquire Actavis for more than USD13 billion.

Elsewhere in M&A news, six major Vodafone investors said USD100 billion was not enough for the British company's stake in its U.S. joint venture with Verizon Communications, and urged it to come up with an offer of at least USD120 billion.

The news sent Verizone shares down 0.18%, while U.S. traded shares of Vodafone slid 0.36% at the open of the U.S. trading session.

In the tech sector, Apple saw shares jump 1.06% following reports Nokia Oyj is counting on a bare-bones handset that sells for just USD20 to give the Finnish company an edge in its struggle to catch up with the iPhone maker and Korean rival Samsung Electronics in the market for smartphones costing USD500 or more.

Adding to gains, the Walt Disney Company rallied 1.18% after UBS raised its rating on the conglomerate to "buy" from "neutral."

Meanwhile, financial stocks were mixed. Bank of America edged up 0.08% and Goldman Sachs added 0.19%, while Citigroup dipped 0.06% and JP Morgan slipped 0.20%.

Other stocks in focus included Express Scripts, Hartford Financial and Herbalife, scheduled to post earnings after the closing bell.

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 climbed 0.69%, France’s CAC 40 jumped 0.94%, Germany's DAX gained 0.39%, while Britain's FTSE 100 added 0.13%.

During the Asian trading session, Hong Kong's Hang Seng Index was little changed, while markets in Tokyo and Shanghai are closed for the Golden Week public holidays.

Also Monday, official data showed that U.S. personal spending increased slightly more-than-expected in March, rising 0.2%, while personal income edged up 0.02%, below forecasts for a 0.4% increase.

Later in the day, the U.S. was to release a report on pending home sales.


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