Stocks mostly lower; telecom lags

Michael Nagle | Bloomberg | Getty Images

Traders work on the floor of the New York Stock Exchange (NYSE) in New York, U.S., on Friday, Dec. 15, 2017.

Monday also marks the last trading day of April, which is on pace to be the first positive month in three for the major indexes. Stocks opened higher, helped by a flurry of deal announcements and encouraging earnings reports.

Logistics company Prologis is acquiring DCT Industrial Trust for $8.4 billion in an all-stock deal. DCT Industrial’s shares popped more than 11.5 percent. Marriott Vacations, the hotel chain’s timeshare business, is also buying rival ILG for $4.7 billion.

Meanwhile, shares of Andeavor jumped 16.7 percent after Marathon Petroleum agreed to acquire it for $23 billion.

“This is really a byproduct of the same source of better sentiment, which is government backing off,” said Maris Ogg, president at Tower Bridge Advisors.

In other earnings news, Botox-maker Allergan also posted a better-than-expected profit for the previous quarter.

“I’m encouraged by the reaction to McDonald’s earnings,” said Lindsey Bell, investment strategist at CFRA. She also said that several companies have seen their stocks initially rise and then fall after reporting better-than-expected earnings. “For the most part, it seems like investors are taking advantage of any pop in stocks to take profits,” she said.

Bell added, however, this earnings season has been strong. Of the S&P 500 companies that have reported through Monday morning, 79.3 percent have reported stronger-than-forecast earnings, according to FactSet.

More than 100 S&P 500 companies are scheduled to report earnings this week, including Apple and Mondelez International.

In economic news, the personal consumption expenditures (PCE) price index posted last month its biggest year-over-year gain since February 2017. The so-called core PCE — which strips out food and energy — jumped 1.9 percent through March. The core PCE is the Federal Reserve’s preferred measure of inflation.

The U.S. 10-year Treasury yield briefly fell to its lowest since April 20, while the 2-year yield traded near 2.5 percent. The U.S. dollar index rose slightly.

Elsewhere, pending home sales barely rose as buyers struggled to afford what little supply is available.