U.S. stocks close lower on Monday, pulling back from earlier gains. On the upside, Hewlett-Packard gains ground after it said it's splitting into two public companies. Bobbi Rebell reports.
Stocks jumped higher at the open as investors picked up shares of companies driven by a series of deals. But all three indices fell into the red by noon. Wunderlich Securities chief market strategist Art Hogan: SOUNDBITE: ART HOGAN, MANAGING DIRECTOR, CHIEF MARKET STRATEGIST, WUNDERLICH SECURITIES (ENGLISH) SPEAKING: "We're starting earning season. We are not concerned about the third quarter. We're starting to be concerned about the fourth quarter. I think, right now, what we are looking at is a market that had a great Friday and bad two weeks in a row. And, I think, we're, in a short run, very oversold, I think, heading into earnings season the bar is very low for us to exceed." Silicon Valley icon Hewlett-Packard finally did what it said it wouldn't do after wavering about it for years: split up. It's separating its traditional printer and PC business from its faster-growing hardware and services operations. And it's cutting another 5,000 jobs. Those moves lifted the stock, adding to its 25 percent gain this year. Moor Insights analyst Patrick Moorhead says look for HP to be on the prowl following the split. SOUNDBITE: PATRICK MOORHEAD, PRESIDENT & PRINCIPAL ANALYST, MOOR INSIGHTS & STRATEGY (ENGLISH) SPEAKING: "The biggest benefit to the breakup on the enterprise side is going to be, or one of the biggest ones, is to be able to make some investments that they have. And I'd be really interested to see some sort of a tie-up between EMC and HP. I know the rumors are abound out there. I think that would be a very interesting merger. On the PC side I'm not expecting big acquisitions of companies, but I'm expecting acquisitions of technologies to make up for some of the investments they haven't made up to this point." Carefusion's stock got an injection after the infusion pump maker agreed to be sold to medical equipment supplier Becton Dickinson. Analysts say the combo will provide one-stop shopping for hospitals. Going the other way: GT Advanced. The Apple partner filed for bankruptcy protection, sending its stock into free fall. It had been building a sapphire glass plant with Apple, but Apple decided not to use that glass in its new large-screen iPhones unveiled last month. New York's Waldorf Astoria Hotel, the American icon that serves presidents and prime ministers, was sold for nearly $2 billion. Buying it from Hilton: Chinese insurer Anbang Insurance. In Europe, stocks made modest gains, extending Friday's momentum as strong metals prices drove mining shares higher.