US STOCKS-Indexes rise on tech M&A, but China and oil drag Tue May 29, 2007 10:57PM BST
Email This Article | Print This Article | Reprints [-] Text [+] (Adds Nasdaq volume, NYSE and Nasdaq advance/decline figures in new paragraphs 21-22)
By Ellis Mnyandu
NEW YORK, May 29 (Reuters) - U.S. stocks ended higher on Tuesday, helped by a wave of takeover news involving tech companies such as Avaya Inc. (AV.N: Quote, Profile, Research, but China's move to cool off its skyrocketing stock market limited Wall Street's broader advance and raised concern about a global equity sell-off.
A slide in shares of energy companies, including Exxon Mobil Corp. (XOM.N: Quote, Profile, Research, weighed on the Dow Jones industrial average and the S&P 500 in light post-holiday trading as U.S. oil prices dropped about $2 a barrel.
The Chinese government's move, announced late in the U.S. trading session, put investors on edge and contributed to a choppy session despite optimism about stock valuations in the tech sector.
"The concern is that China may be acknowledging that their markets are overheated by the action they've taken today," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles. "Any little ripple like this is grounds for the (U.S.) market to sell off."
The Dow Jones industrial average (.DJI: Quote, Profile, Research edged up 14.06 points, or 0.10 percent, to end at 13,521.34. The Standard & Poor's 500 Index (.SPX: Quote, Profile, Research inched up 2.38 points, or 0.16 percent, to close at 1,518.11. The Nasdaq Composite Index (.IXIC: Quote, Profile, Research rose 14.87 points, or 0.58 percent, to finish at 2,572.06.
A slide in Chinese equities in late February set off a sell-off in stock markets around the world. Since then, Wall Street has surged on a wave of takeovers and share buybacks.
Last week, the S&P 500 even flirted with closing at a fresh record Continued...
AGM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
