Summary: U.S. stocks extend losses; Encana to pay $6bln for Athlon Energy; Tibco Software going private; Consumer spending accelerates. Bobbi Rebell reports.
U.S. equity markets extended their losing streak Monday, though investors added to to their positions, keeping the losses in check. Much of the weakness came as investors monitored the continued civil unrest in Hong Kong and its potential impact on economic growth in China. The dollar took a break from its three-month rally on concerns about Beijing's response to the protests. Standard and Poor's Beth Ann Bovino says concerns about the economy there are real: SOUNDBITE: BETH ANN BOVINO, SENIOR ECONOMIST, STANDARD & POOR'S (ENGLISH) SAYING: "How is the stability in the country? Are we seeing activity? Are we seeing economic activity in that region, or is that being slowed which would also hurt not just the US exports but other places as well?" Canada's largest natural gas producer, Encana, is buying Athlon Energy for close to $6 billion dollars in cash - a 25 percent premium to Friday's close. And in the largest technology buyout this year, shares of business software maker Tibco Software soared on news it will be taken private for $4.3 billion by Vista Equity Partners. And the fallout from Bill Gross' exit on Friday from Pimco continues. Investment firm Doubleline Capital, a Pimco rival says it saw between $400 and $500 million worth of inflows on Friday. According to the Wall Street Journal, investors in Pimco withdrew about $10 billion following the announcement. Alibaba's shares fell. Volume for options of the Chinese e-commerce company were active in their first day of trading on U.S. exchanges. New data shows Americans are spending more, up half a percent last month. That is the biggest gain since March. Some of that increase came from saving less. The savings rate fell back from a 1-1/2 year high in July. A separate report showed Americans signed fewer contracts to buy existing homes in August. U.S. judge held Argentina in contempt of court on Monday saying the country was trying to find ways to get around a prior order to pay more than $1.3 billion to holdout bondholders. He deferred a decision on imposing sanctions to a later date. In Europe companies exposed to Hong Kong underperformed. The major indexes were all weaker.