US stocks mixed as Intel buys Altera for $16.7bn

Wall Street opened higher but then quickly gave up gains Monday, as Dow blue chip Intel announced the $16.7 billion takeover of rival chipmaker Altera.

After sagging last week, an hour into trade the Dow Jones Industrial Average was up 10.87 points (0.06 percent) to 18,021.55.

The broad-based S&P 500 fell a bare 0.48 (0.02 percent) at 2,106.91, while the tech-rich Nasdaq Composite Index lost 10.84 (0.21 percent) at 5,059.19.

Fresh economic data again left an unclear picture, giving the Federal Reserve more reason to delay an expected interest rate hike until later this year.

Personal incomes grew 0.4 percent in April, after a flat March, but spending fell as US households boosted savings.

Meanwhile a key inflation indicator, the personal consumption expenditures (PCE) price index, slowed to 1.2 percent year-on-year in April, well below the Fed's 2.0 percent target.

At the same time, construction spending showed a solid rebound in April and the ISM manufacturing index for May came in with a better-than expected gain, though the level was still low.

Altera shares surged 6.1 percent to $51.84 on Intel's $54-per-share takeover deal, the second giant merger in the semiconductor industry in two weeks. Intel stock lost 2.0 percent.

Among major companies, Citigroup gained 1.4 percent and JPMorgan 0.8 percent.

Bond prices fell. The yield on the 10-year US Treasury jumped to 2.15 percent from 2.10 percent and the 30-year rose to 2.94 percent from 2.85 percent. Bond prices and yields move inversely.