Investing.com - U.S. stocks opened slightly higher on Monday, as sustained concerns over the debt crisis in the euro zone limited gains despite last week’s surprise announcements at a European summit, while investors awaited the release of key U.S. economic data.
During early U.S. trade, the Dow Jones Industrial Average eased up 0.06%, the S&P 500 index rose 0.22% while the Nasdaq Composite index added 0.21%.
On Friday, European Union leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt and also agreed to set up a joint banking supervisory body for the euro area.
In addition to the direct recapitalization of Spain’s banks, euro zone bailout funds will be able to purchase government debt in order to keep down borrowing costs.
But market sentiment cooled on Monday, as details about how and when European leaders can put the newly agreed measures into practice still remained uncertain.
Meanwhile, concerns over global growth resurfaced after official data showed that the unemployment rate in the euro zone rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
Apple shares rose 0.39% after a U.S. judge on Friday granted the computer tech company’s request for a pre-trial injunction against the sale of Samsung Electronics’ Galaxy Nexus phone, handing the iPhone maker its second legal victory against Samsung in a week.
Also in the tech sector, Dell saw shares drop 0.80% amid reports it was near an agreement to buy Quest Software, a maker of programs to manage corporate computer systems, prevailing in a bidding contest with Insight Venture Partners.
Elsewhere, Bristol-Myers Squibb edged up 0.08% after saying it will buy biotechnology company Amylin Pharmaceuticals for about USD5.3 billion in cash, helping Bristol-Myers extend its portfolio of diabetes treatments with the addition of drugs Byetta and Bydureon. Shares in Amlyn surged 8.83% following the announcement.
Also in company news, Lincare Holdings skyrocketed 21.31% after German industrial gas producer Linde said on Sunday it has agreed to pay USD4.6 billion for the Florida-based provider of oxygen and respiratory therapy services to patients in the home.
Meanwhile financial stocks were mixed. Shares in JP Morgan rose 0.36% and Goldman Sachs advanced 0.44%, while Citigroup climbed 0.80% and Bank of America fell 0.12%.
Barclays saw shares surge 2.82%, as Chairman Marcus Agius resigned after the bank was fined a record GBP290 million for trying to rig interest rates, sparking a political outcry.
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 jumped 1.18%, France’s CAC 40 rallied 1.35%, Germany's DAX advanced surged 1.32%, while Britain's FTSE 100 climbed 0.90%.
During the Asian trading session, Hong Kong's Hang Seng Index rose 0.9%, while Japan’s Nikkei 225 Index ended the session little changed.
Also Monday, data showed that China’s HSBC PMI posted a reading of 48.2 in June, little changed from an initial estimate of 48.1, remaining in contraction territory for the eighth successive month.
Later in the day, the U.S. Institute for Supply Management was to release a report on activity in the manufacturing sector.
During early U.S. trade, the Dow Jones Industrial Average eased up 0.06%, the S&P 500 index rose 0.22% while the Nasdaq Composite index added 0.21%.
On Friday, European Union leaders agreed to use the euro zone’s bailout funds to support struggling banks directly, without adding to national debt and also agreed to set up a joint banking supervisory body for the euro area.
In addition to the direct recapitalization of Spain’s banks, euro zone bailout funds will be able to purchase government debt in order to keep down borrowing costs.
But market sentiment cooled on Monday, as details about how and when European leaders can put the newly agreed measures into practice still remained uncertain.
Meanwhile, concerns over global growth resurfaced after official data showed that the unemployment rate in the euro zone rose to a record high 11.1% in May, up from 11.0% in April.
A separate report showed that the final reading of the euro zone manufacturing purchasing managers’ index came in at 45.1 in June, above the preliminary estimate of 44.8 and holding steady at its lowest level since June 2009.
Apple shares rose 0.39% after a U.S. judge on Friday granted the computer tech company’s request for a pre-trial injunction against the sale of Samsung Electronics’ Galaxy Nexus phone, handing the iPhone maker its second legal victory against Samsung in a week.
Also in the tech sector, Dell saw shares drop 0.80% amid reports it was near an agreement to buy Quest Software, a maker of programs to manage corporate computer systems, prevailing in a bidding contest with Insight Venture Partners.
Elsewhere, Bristol-Myers Squibb edged up 0.08% after saying it will buy biotechnology company Amylin Pharmaceuticals for about USD5.3 billion in cash, helping Bristol-Myers extend its portfolio of diabetes treatments with the addition of drugs Byetta and Bydureon. Shares in Amlyn surged 8.83% following the announcement.
Also in company news, Lincare Holdings skyrocketed 21.31% after German industrial gas producer Linde said on Sunday it has agreed to pay USD4.6 billion for the Florida-based provider of oxygen and respiratory therapy services to patients in the home.
Meanwhile financial stocks were mixed. Shares in JP Morgan rose 0.36% and Goldman Sachs advanced 0.44%, while Citigroup climbed 0.80% and Bank of America fell 0.12%.
Barclays saw shares surge 2.82%, as Chairman Marcus Agius resigned after the bank was fined a record GBP290 million for trying to rig interest rates, sparking a political outcry.
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 jumped 1.18%, France’s CAC 40 rallied 1.35%, Germany's DAX advanced surged 1.32%, while Britain's FTSE 100 climbed 0.90%.
During the Asian trading session, Hong Kong's Hang Seng Index rose 0.9%, while Japan’s Nikkei 225 Index ended the session little changed.
Also Monday, data showed that China’s HSBC PMI posted a reading of 48.2 in June, little changed from an initial estimate of 48.1, remaining in contraction territory for the eighth successive month.
Later in the day, the U.S. Institute for Supply Management was to release a report on activity in the manufacturing sector.