(Updates to close)
* Pfizer works on next move in takeover bid for Astrazeneca
* Amazon.com leads Nasdaq's loss
* Bank of America drops after suspending dividend increase,
* Dow up 0.5 pct; S&P 500 up 0.3 pct; Nasdaq down 0.03 pct
By Caroline Valetkevitch
NEW YORK, April 28 The S&P 500 ended higher on
Monday after a volatile session, as gains in Apple and
Pfizer helped offset another round of selling in some
high-growth tech shares.
The Nasdaq ended slightly lower but rebounded late in the
session from a fall of over 1 percent. Leading the Nasdaq down
was Amazon.com, which extended Friday's sharp decline a
day after its earnings report.
A flurry of merger and acquisition activity in the
pharmaceutical sector lifted shares. Shares of Pfizer Inc
gained 4.2 percent to $32.04 after the U.S. drugmaker
was said to be working on its next move in a potential $100
billion bid to take over Britain's AstraZeneca Plc,
after two earlier bids were rejected. Pfizer's
gains helped to lift the Dow.
"What we saw earlier was you had more rotation out of the
high-beta momentum names, and I think a lot of those tech
players rotated into Apple, which just had positive earnings and
the buyback and dividend boost," said Michael O'Rourke, chief
market strategist at JonesTrading in Greenwich, Connecticut.
"Obviously, this whole M&A aspect of the pharmaceutical
healthcare industry has people positively biased for the time
The Dow Jones industrial average rose 87.28 points or
0.53 percent, to end at 16,448.74. The S&P 500 gained
6.03 points or 0.32 percent, to 1,869.43. The Nasdaq Composite
dropped 1.161 points or 0.03 percent, to 4,074.401.
Apple's stock jumped 3.9 percent to $594.09. The stock has
gained 13.2 percent since the close on Wednesday, when Apple
reported results after the bell.
Amazon.com ended down 2.4 percent at $296.58, while Facebook
fell 2.7 percent to close at $56.14. High-growth stocks
such as those have been battered in recent weeks as investors
have pulled out of the tech and biotech space.
Bank of America shares tumbled 6.3 percent to $14.95 after
the company said it will suspend a planned increase in its
quarterly dividend as well as its latest stock-buyback program
because it miscalculated a measure of the capital on its books.
The three major U.S. stock indexes lost ground during the
session after Reuters, citing sources, reported that European
Central Bank President Mario Draghi sees quantitative easing as
still a ways away.
Chinese Internet stocks fell after China's government
ordered the removal of four U.S. television shows, including
"The Big Bang Theory," from video websites during the weekend.
The U.S.-listed shares of Baidu slid 7.4 percent to
In another M&A deal, Forest Laboratories Inc said it
would buy Furiex Pharmaceuticals Inc for up to $1.46
billion, including milestone payments to add Furiex's promising
treatment for irritable bowel syndrome to Forest's portfolio of
Furiex Pharmaceuticals shares surged 28.6 percent to $103.05
while Forest Laboratories shares shed 0.4 percent to $89.50.
About 7.4 billion shares changed hands on U.S. exchanges,
above the 6.5 billion average so far this month, according to
data from BATS Global Markets.
Advancers outnumbered decliners on the New York Stock
Exchange by a ratio of 8 to 7. On the Nasdaq, eight stocks fell
for every five that rose.
(Editing by Bernadette Baum and Jan Paschal)