US shares closed mixed Monday as investors took some recent profits ahead of key inflation figures due out today, which offset news that DaimlerChrysler agreed to sell 80% of its Chrysler unit. Tuesday's consumer price index and its inflation-tracking component, the core CPI, kick off a busy week of economic data.
The Dow closed up 20.56 or 0.15% at 13,346.78, while the S&P 500 ended down 2.70 or 0.18% at 1,503.15. The Nasdaq finished the day down 15.78 or 0.62% at 2,546.44.
Among the movers, DaimlerChrysler yesterday said it would sell an 80% stake in Chrysler, its US auto unit, for US$7.4 billion to private equity firm Cerberus Capital Management. DaimlerChrysler shares jumped more than 2%.
Leading the Dow's advance, General Motors rose 4% amid broad gains among auto stocks. Meanwhile, Ford Motor gained 4% after a news report said the auto maker's founding family is considering the sale of a controlling stake.
Among the other blue chips, Johnson & Johnson rose 0.6%. A court ruled late Friday that Teva Pharmaceutical infringed on a patent for Aciphex, an anti-ulcer drug co-marketed by Johnson & Johnson. Teva Pharmaceutical shares inched up 0.1%.
Elsewhere, Nokia shares rose 3.6% after the company lifted its outlook for the second quarter. But the outlook, which rests partly on the mobile phone maker's ability to gain market share, hurt other telecom shares.
Dow Jones & Co gained 1.3% after Rupert Murdoch offered the Bancroft family, which holds a controlling interest in Dow Jones, a seat on the board of News Corp if family members agree to his US$5 billion offer for the company. News Corp shares rose 1%.
On the downside, tech shares were under pressure amid declines from Cisco Systems, which fell 1.2%, Yahoo, which lost 2.5% and Dell, whose shares were 2.1% cheaper at the final bell.
NYMEX light crude oil for June delivery rose US 9c or 0.14% to US$62.46 a barrel, while COMEX gold for June delivery fell US$2.20 or 0.33% to US$670.1 an ounce.
In Europe, Britain's key share index ended lower on Monday as inflationary concerns pulled stocks further into the red. Last week, the Bank of England raised UK interest rates to 5.5%, their highest level in six years and investors are betting that the bank could raise them again as soon as next month.
The inflationary jitters hit banks, with Royal Bank of Scotland down 0.5% and HSBC 0.4% lower.
Meanwhile, mining shares slipped as base metal prices fell. Among the mining issues, Lonmin ended down 3.4% after a broking house downgraded its recommendation to "neutral" from "buy".
Rio Tinto lost 3.5% after a newspaper report said the miner had hired investment bank Morgan Stanley to help defend it against a potential hostile takeover bid. BHP Billiton closed down 2%.
On the upside, Pearson, the world's largest educational publisher, added 2% after it said it had agreed to acquire education company eCollege for US$477 million.
But it was Britain's biggest domestic energy supplier, Centrica, which gained 2.1% to top the leader board after it said it might beat full year profit forecasts.
The FTSE 100 ended down 10.2 or 0.16% at 6,555.5.
On the other side of the channel, share prices in Paris closed lower amid widespread profit taking after the strong recent rally. In Frankfurt, shares closed lower after Deutsche Postbank reported first quarter figures that came in largely below consensus estimates.
In France, Atos Origin was the day's big faller, plunging 13.8% after stronger-than-expected first quarter sales were overshadowed by news that its talks with potential suitors had ended.
Meanwhile, Deutsche Postbank lost 1.7% after Germany's largest retail bank released first quarter numbers that disappointed investors.
The French CAC-40 finished down 24.21 or 0.40% at 6,026.42, while the German DAX-30 fell 19.73 or 0.26% to 7,459.61.
In Asia, Japan’s Nikkei average rose as exporters regained ground following an advance in stocks in the United States, which is one of the biggest markets for Japanese goods.
Among the major exporters, Toyota Motor added 2.4% and Kyocera shares increased 1.8%.
The Nikkei closed up 124.22 or 0.71% at 17,677.94.
Hong Kong share prices closed sharply higher following the announcement that mainland banks and funds are now allowed to buy overseas stocks under revised investment laws. Under the revised rules, mainland banks may invest up to 50% of the net value of their offshore investment in stocks.
The large caps posted some handsome gains on Monday, with China Mobile up 3.9% and Hutchison Whampoa up 1.5%.
The Hang Seng closed up 511.03 or 2.5% at a new closing high of 20,979.24.
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