(Updates to close)
* Dow up 0.5 pct; S&P 500 up 0.3 pct; Nasdaq down 0.03 pct
By Caroline Valetkevitch
NEW YORK (Frankfurt: HX6.F - news) , April 28 (Reuters) - The S&P 500 ended higher onMonday after a volatile session, as gains in Apple (NasdaqGS: AAPL - news) andPfizer helped offset another round of selling in somehigh-growth tech shares.
The Nasdaq ended slightly lower but rebounded late in thesession from a fall of over 1 percent. Leading the Nasdaq downwas Amazon.com, which extended Friday's sharp decline aday after its earnings report.
A flurry of merger and acquisition activity in thepharmaceutical sector lifted shares. Shares of Pfizer Inc gained 4.2 percent to $32.04 after the U.S. drugmakerwas said to be working on its next move in a potential $100billion bid to take over Britain's AstraZeneca Plc,after two earlier bids were rejected. Pfizer'sgains helped to lift the Dow.
"What we saw earlier was you had more rotation out of thehigh-beta momentum names, and I think a lot of those techplayers rotated into Apple, which just had positive earnings andthe buyback and dividend boost," said Michael O'Rourke, chiefmarket strategist at JonesTrading in Greenwich, Connecticut.
"Obviously, this whole M&A aspect of the pharmaceuticalhealthcare industry has people positively biased for the timebeing."
The Dow Jones industrial average rose 87.28 points or0.53 percent, to end at 16,448.74. The S&P 500 gained6.03 points or 0.32 percent, to 1,869.43. The Nasdaq Composite dropped 1.161 points or 0.03 percent, to 4,074.401.
Amazon.com ended down 2.4 percent at $296.58, while Facebook fell 2.7 percent to close at $56.14. High-growth stockssuch as those have been battered in recent weeks as investorshave pulled out of the tech and biotech space.
Bank of America shares tumbled 6.3 percent to $14.95 afterthe company said it will suspend a planned increase in itsquarterly dividend as well as its latest stock-buyback programbecause it miscalculated a measure of the capital on its books.
The three major U.S. stock indexes lost ground during thesession after Reuters, citing sources, reported that EuropeanCentral Bank President Mario Draghi sees quantitative easing asstill a ways away.
Chinese Internet stocks fell after China's governmentordered 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 (Xetra: B1C.DE - news) slid 7.4 percent to$150.93.
In another M&A deal, Forest Laboratories Inc (NYSE: FRX - news) said itwould buy Furiex Pharmaceuticals Inc (NasdaqGS: FURX - news) for up to $1.46billion, including milestone payments to add Furiex's promisingtreatment for irritable bowel syndrome to Forest's portfolio ofgastrointestinal drugs.
Furiex Pharmaceuticals shares surged 28.6 percent to $103.05while 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 todata from BATS Global Markets.
Advancers outnumbered decliners on the New York StockExchange by a ratio of 8 to 7. On the Nasdaq, eight stocks fellfor every five that rose. (Editing by Bernadette Baum and Jan Paschal)
- Stocks & Offerings
- Health Care Industry
- Bank of America