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U.S. stocks opened modestly lower as investors readied for the start of earnings season and took in a major deal from Microsoft.
|I:DJI||DOW JONES AVERAGES||33773.86||-26.74||-0.08%|
The Dow Jones Industrial Average fell over 40 points, or 0.13%, while S&P 500 and Nasdaq Composite were lower by 0.35% and 0.11%, respectively. Both the Dow and the S&P finished at all-time highs on Friday as the Nasdaq escaped bear-market territory.
In M&A news, Nuance Communications is being acquired by Microsoft in a $19.7 billion deal for the cloud and AI provider. The all-cash transaction will pay Nuance shareholders $56 per share, a 23% premium to Friday’s closing price. The deal is the second-largest for Microsoft, behind its $26 billion purchase of LinkedIn in 2016.
|NUAN||NUANCE COMMUNICATIONS, INC.||53.55||+7.97||+17.49%|
In addition, earnings season is set to kick off on Wednesday with big banks Goldman Sachs Group Inc., JPMorgan Chase & Co. and Wells Fargo & Co. set to release their quarterly results.
|JPM||JPMORGAN CHASE & CO.||156.74||+0.35||+0.22%|
|GS||THE GOLDMAN SACHS GROUP, INC.||333.55||+2.55||+0.77%|
|WFC||WELLS FARGO & CO.||40.62||+0.12||+0.31%|
Elsewhere, Uber Technologies Inc. reported gross bookings hit a record high in March as ride hailings snapped back to pre-pandemic levels and food delivery more than doubled from the previous year.
|UBER||UBER TECHNOLOGIES, INC.||59.60||+1.91||+3.31%|
Meanwhile, Alibaba Group Holdings was fined a record 18 billion Chinese yuan ($2.75 billion) by Chinese regulators for anticompetitive behavior. However, the fine was smaller than feared.
|BABA||ALIBABA GROUP HOLDING LTD||240.78||+17.44||+7.81%|
In commodities, West Texas Intermediate crude oil climbed 81 cents or $60.13 per barrel and gold slipped $1.80 to $1,743 an ounce.
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Overseas markets were mixed.
In Europe, Germany’s DAX 30 and France’s CAC 40 advanced 0.17% and 0.15%, respectively, while Britain’s FTSE 100 fell 0.31%.
Asian markets were lower across the board with China’s Shanghai Composite index losing 1.09%, Hong Kong’s Hang Seng index declining 0.86% and Japan’s Nikkei 225 sliding 0.77%.
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