By Kristina Peterson, MarketWatch
U.S. stocks opened slightly lower on Monday as investors
prepared for the White House's 2012 budget proposal to show a jump
in the projected deficit.
The Dow Jones Industrial Average (DJI) slipped 28 points, or
0.2%, to 12,245. Exxon Mobil Corp. (XOM) shares led the declines,
falling 1%. Wal-Mart Stores Inc. (WMT) shares were also weak, down
0.9%.
Keeping the Dow's losses in check, General Electric Co. (GE)
rose 1.1% after agreeing to buy the well-support division of U.K.
firm John Wood Group PLC for $2.8 billion in cash to bolster its
oil and gas services business in areas like extracting natural gas
from shale.
The Nasdaq Composite (RIXF) edged up less than one point to
2810. The Standard & Poor's 500-stock index (SPX) shed 0.1% to
1,328.
Investors on Monday waited for details of President Barack
Obama's budget proposal for fiscal year 2012, which will be
released at 10:30 a.m. EST. The White House projected that the
federal deficit would spike to $1.65 trillion in the current fiscal
year, the largest dollar amount ever, fueled in part by a tax-cut
extension that the president and Republican lawmakers brokered in
December.
A stronger dollar weighed on stocks Monday morning as the euro
sank to a three-week low against the dollar. Worries about the
strength of German bank WestLB added to renewed euro-area sovereign
concerns, sending the euro to $1.3455, down from $1.3560 late
Friday in New York.
Meanwhile, Asian equities were largely higher, boosted by a
surge in Chinese imports last month.
Among stocks in focus, MGM Resorts International (MGM) fell 2.8%
after the casino company's fourth-quarter loss narrowed
significantly from a year earlier but revenue declined and revenue
per available room fell on the Las Vegas strip.
U.S.-listed shares of Nokia Corp. (NOK) dropped 4.1%, extending
their Friday decline after the telecom equipment maker announced a
partnership with Microsoft. J.P. Morgan Cazenove downgraded Nokia
to underweight from overweight, saying that "the degree to which
the [Microsoft] deal is beneficial to Nokia is still unclear." On
Monday Nokia chief executive Stephen Elop said the company hopes to
launch its first smartphone based on Microsoft's Windows Phone
platform this year.
Seahawk Drilling (HAWK) shares tumbled 56% after the firm said
late Friday it would file for bankruptcy protection and sell its
assets to Hercules Offshore (HERO) , whose shares rose 21%.
Demand for U.S. Treasurys declined, pushing yield on the 10-year
note (UST10Y) up to 3.66%. Crude-oil prices edged down, while gold
futures advanced.