Economics
U.S. Stocks Little Changed as Deal Talk Offsets Earnings Worry
- Microsoft reaches record, Time Warner jumps on M&A speculation
- Dollar surge spurs worries of forex drag on corporate profits
GE, Honeywell Face Hurdle of Slow Economic Growth
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U.S. stocks closed little changed after erasing an early selloff, as deal activity boosted consumer stocks and Microsoft Corp. rallied to a record, offsetting losses spurred by concerns a stronger dollar will damp corporate earnings.
Equities rebounded as Reynolds American Inc. soared the most ever after British American Tobacco Plc offered to pay $47 billion for full control of the cigarette maker. Time Warner Inc. jumped to a 15-month high on speculation it may agree to a takeover by AT&T Inc. That blunted declines spurred by the surging dollar and disappointing outlooks from General Electric Co. and Advanced Micro Devices Inc. AT&T sank 3 percent to a seven-month low.