US Stocks Stall After 6-Day Rally; Exxon, Energy Shares Slide

A six-day rally in U.S. stocks stalled following declines in Asian and European equity markets, as speculation grew that economic and earnings growth will slow.
Exxon Mobil Corp. led energy companies lower after oil prices retreated on signs that mild temperatures in the U.S. Northeast may trim heating demand. Freeport-McMoRan Copper & Gold Inc. slid after the company agreed to buy Phelps Dodge Corp. for $25.9 billion in the world's biggest mining takeover.
``At some point the market's going to care about the U.S. economy continuing to slow down and being a threat to earnings,'' said Peter Boockvar, equity strategist at Miller Tabak & Co. in New York.
The Dow Jones Industrial Average dropped 10.40, or 0.1 percent, to 12,332.16 at 10:23 a.m. in New York, threatening to end its longest winning streak in a year. The Standard & Poor's 500 Index added 0.27 to 1401.47. The Nasdaq Composite Index increased 1.93, or 0.1 percent, at 2447.79.
Following a six-day advance, the S&P 500's relative strength index today reached 71.56, which is above a threshold of 70 that indicates it has risen too far, too fast. The index identifies possible turning points for a security by calculating the degree by which gains outpace losses in a given time period.
Global Retreat
Stocks in Europe and Asia fell, with the Dow Jones Stoxx 600 Index retreating from a six-year high reached last week, while the Morgan Stanley Capital International Asia-Pacific Index posted its biggest drop since Sept. 11.
A streak of at least 10 percent profit expansion by S&P 500 companies is forecast to end this quarter, according to Thomson Financial on Nov. 17. Earnings will increase 8.5 percent, based on analysts' estimates.
An index of leading U.S. economic indicators rose in October. The Conference Board's index increased 0.2 percent after a revised gain of 0.4 percent in September that was four times larger than initially reported, the New York-based group said today. The index points to the direction of the economy over the next three to six months.
A measure of oil-related companies declined 0.8 percent for the worst performance among 24 industry groups in the S&P 500. The shares make up 9.6 percent of the benchmark index.
Crude oil for January delivery fell 0.9 percent to $58.47 a barrel in electronic trading in New York.
Exxon slid 75 cents to $72.33. Chevron Corp. dropped 32 cents to $68.78.
M&A
A slew of mergers-and-acquisitions announcements kept the market from falling further.
Freeport dropped 69 cents to $56.71 after the company agreed to buy Phelps Dodge. Phelps Dodge stockholders will get $88 in cash and 0.67 share of Freeport. The deal values Phelps Dodge at $126.46 a share, 33 percent more than its last closing price. Shares of Phelps Dodge surged $26.56 to $121.58.
Charles Schwab Corp. climbed 29 cents to $18.85 after Bank of America Corp. said it will buy U.S. Trust, the private-banking arm of Schwab, for $3.3 billion in cash to lure wealthy clients. Shares of Bank of America added 12 cents to $54.97.
Nasdaq Stock Market Inc. gained 13 cents to $36.70 after the bourse bid for the remaining 75 percent of London Stock Exchange Plc it doesn't own.
Nasdaq, the largest U.S. electronic equity exchange, made its second attempt to buy the operator of Europe's biggest equity market. The offer values the U.K. exchange at about 2.7 billion pounds ($5.1 billion). LSE rejected the bid, saying it ``substantially undervalues the company.''
Nasdaq
Shares of billionaire Sam Zell's Equity Office Properties Trust rose $3.14 to $47.86 after Blackstone Group LP, manager of the world's largest buyout fund, agreed to buy the top U.S. office landlord, for about $20 billion in the biggest private- equity deal in history.
Equity Office shareholders will receive $48.50 a share. Including assumption of Equity Office debt, the transaction is worth $36 billion, topping the $33 billion acquisition of hospital chain HCA Inc. announced in July.
Companies have announced about $1.51 trillion of U.S. deals this year, according to data compiled by Bloomberg, building on the busiest year for U.S. takeovers since 2000. Across the globe, mergers and acquisitions rose to a record $3.1 trillion.
Allergan
Allergan Inc. rose $5.75 to $118.25. Silicon breast implants made by the company will again be sold for cosmetic use in the U.S., after regulators ended sales restrictions imposed 14 years ago for safety reasons.
Microsoft Corp., the world's largest software-maker, rose 28 cents to $29.68 after Credit Suisse Group raised its stock recommendation for the company to ``outperform'' from ``neutral.''
``The stock can appreciate nearly 20 percent from current levels given increased confidence in our earnings estimates, strengthening market position in digital entertainment and the potential for revenue upside,'' analysts including Jason Maynard and Bryan McGrath wrote in a research note. They raised the stock's price estimate to $35 from $29.