Stock Market News for November 16, 2010

Despite two big mergers and acquisitions news and better-than-expected retail sales report, stocks had a mixed finish on Monday as confusion over whether Ireland needs a bailout kept investors jittery. European Union officials urged Ireland to accept a bailout package but Dublin insisted it was not looking for a funding.
 
The re-emergence of European sovereign debt worries, which have long kept investors on toes, signalled the thorny issue of European finance had once again begun to spread its tentacles and could possibly have a bearing on an already shaky global economic growth. Therefore, in a week full with economic data, investors showed little passion Monday and chose to keep their cards close to their chests.
 
In the early going, stocks got some boost from reports that Caterpillar (NYSE:CAT - Analyst Report) had agreed to acquire mining equipment firm Bucyrus International (NASDAQ:BUCY) for about $7.6 billion. After Caterpillar made the announcement, shares in Bucyrus shot up 29%. Caterpillar gained 1%.
 
EMC Corp. (NYSE:EMC - Analyst Report) kept the M&A front active by announcing an agreement to acquire its competitor Isilon Systems Inc. (NASDAQ:ISLN) in an all-cash deal valued at $33.85 per share or $2.2 billion.
 
Encouraged by the M&A news, the Dow average jumped 88 points, but gave away almost all of those gains to close up 9.39 points, or 0.1%, to 11201.97. The tech-focused Nasdaq Composite index dropped more than 4 points, or 0.2%, to 2513.82. The broader S&P 500 index fell 1.46 points, or 0.1%, to 1197.75. Volume dipped on the New York Stock Exchange.

Meanwhile, the dollar advanced 0.1% against a basket of currencies to 78.673, putting pressure on S&P500 basic material sector shares (-0.7%) and oil and gas (-0.5%) shares. A Citigroup's (NYSE:C - Analyst Report) report that said the technology sector was heading towards a correction, given the group’s 21% advance since August, sent techs down 0.5%.
 
The 10-year dropped 1 16/32 in price, sending its yield to 2.961%, levels not reached since early August prior to Bernanke's Jackson Hole revelation of plans for quantitative easing measures.

According to New York Fed President Dudley, the era of ultra-loose policy may be "years away." Fed chairwoman Yellen was of the view that a double-dip recession scenario was unlikely, but noted that "I'm having a hard time seeing where really robust growth can come from. And I see inflation lingering around current levels for a long time."

In Asia, the Shanghai Composite index continued its recent weakness, dropping 4% today, extending its three-day drop to 8%. In Hong Kong, the Hang Seng fell 1.4%, the Nikkei 225-stock average fell 0.3%.

Read the full analyst report on CAT

Read the full analyst report on BUCY

Read the full analyst report on EMC

Read the full analyst report on ISLN

Read the full analyst report on C