US Blue-Chip Stocks Lag, Weighed By AmEx Tumble




-U.S. blue-chip stocks lagged Monday, weighed by a tumble in American Express stock, even as other financial companies climbed.

The Dow Jones Industrial Average fell 33 points, or 0.3% to 11459. American Express was the measure's worst performer, falling 4.2% after Stifel Nicolaus said the global-services company is "more exposed" following last week's Federal Reserve proposals on debit-card interchange fees, as investors worried about what could be next for credit cards.

Boeing was also weak, sliding 2.7%. Over the weekend the chief executive of Qatar Airways said the company could cancel orders for Boeing's 787 Dreamliner if there are further delays to its delivery. Boeing on Monday said it plan to boost production of a separate aircraft, the 777 airplane, starting in 2013.

The Nasdaq Composite edged up 0.1% to 2644. The Standard & Poor's 500-stock index rose 0.1% to 1245, as other financial stocks gained. J.P. Morgan Chase rose 1.1%, while Bank of America added 0.8%.

In light of last week's takeover news, banks are "very well-positioned," said Dan McMahon, director of equity trading at Raymond James. "We're anticipating them starting to pay dividends or buybacks."

The benchmark stock indexes have traded quietly in the past two weeks. Last week, the Dow added 0.7% to cap its third straight week of gains. Encouraged by recent U.S. economic data, investors predicted the muted climb would likely continue through the end of the year. However, trading volume is likely to thin across the holiday-shortened week, which could exaggerate any market moves.

Investors will likely just be "looking to hold on," McMahon said. "You're going to find more and more investors doing less and less this week and next, given the holidays."

Meanwhile, the euro fell to a series of all-time lows against the Swiss franc as investors concerned about the euro zone's festering government-debt problems continued to shun the common currency. The euro was trading recently at $1.3113, down from $1.3185 late Friday in New York. The U.S. Dollar Index, which tracks the dollar against a basket of other currencies, gained 0.3%.

Among stocks in focus, Jefferies Group shed 1% after the investment bank's preliminary fiscal fourth-quarter profit fell 24% from a year ago, hurt by higher costs and investment impacts.

AT&T shed 0.3% after the company said it will pay $1.93 billion for a swath of spectrum licenses from Qualcomm as AT&T looks to bolster its 4G service while Qualcomm said it plans to shut down its mobile broadcast video service. Shares of Qualcomm added 0.1%, while Verizon Communications rose 0.2%.

Defense contractor Raytheon fell 0.4% after agreeing to pay about $490 million to buy intelligence and reconnaissance products company Applied Signal Technology, whose shares jumped 7.9%. Raytheon will pay $38 a share, an 8.5% premium to Applied Signal's Friday's closing price of $35.02.

Medtronic rose 1.3% after the medical-device maker said William A. Hawkins, its chairman and chief executive, will retire in April, the end of the company's current fiscal year.

Sara Lee gained 1.4% after the company's talks on selling itself to Brazil's JBS have hit a snag over price, Bloomberg News reported Monday on its website, citing two unnamed people with direct knowledge of the situation.

Adobe Systems rose 2% ahead of its fiscal fourth-quarter results after the close.

Demand for Treasurys increased, sending yield on the 10-year note down to 3.28%. Prices of crude-oil edged up, while gold futures also rose.