Stocks wobble on big deals

NEW YORK (CNNMoney.com) -- Stocks were choppy Monday morning, as investors mulled some merger news, but opted to hold back after last week's big run up.

The Dow Jones industrial average (down 24.50 to 12,318.06, Charts) lost 0.2 percent in the early going, after ending the previous session at a record high. It was the 18th such record hit by the blue-chip barometer since Oct. 3.

The broader S&P 500 (down 2.68 to 1,398.52, Charts) index also lost 0.2 percent after ending the previous session at its highest level since Nov. 8, 2000.

The Nasdaq composite (down 7.01 to 2,438.85, Charts) lost about 0.2 percent. The tech-fueled index had lost a few points Friday after hitting a nearly 6-year high Thursday.

Stocks had rallied last week, with the Dow rising for six straight sessions, as investors welcomed falling oil prices and further evidence that the economy is headed for a so-called "soft landing" and not a recession.

Such bets remained in place Monday, but investors showed reluctance ahead of a holiday-shortened trading week. All financial markets are closed Thursday for Thanksgiving and markets close early on Friday.

In corporate news, Monday brought a spate of merger news.

Office building owner Equity Office Properties Trust agreed to a buyout from private equity firm Blackstone Group worth $36 billion, including debt. Blackstone was calling it the largest private equity deal ever. Shares of Equity Office (up $3.17 to $47.89, Charts) rallied Monday morning.

In the metals sector, Freeport-McMoRan Copper & Gold (up $0.85 to $58.25, Charts) said it will buy copper miner Phelps Dodge for $25.9 billion in cash and stock. Phelps (up $27.53 to $122.55, Charts) shares jumped 28 percent.

In the financial sector, Bank of America (down $0.07 to $54.78, Charts) said it was buying U.S. Trust - the private banking unit of Charles Schwab (up $0.10 to $18.66, Charts) - for $3.3 billion

U.S. light crude oil for January delivery fell 51 cents to $58.46 a barrel in electronic trading, after hitting a 17-month trading low last week.

Treasury bond prices were little changed, with the yield on the benchmark 10-year note holding at 4.60 percent, roughly where it stood Friday. Bond prices and yields move in opposite directions.

COMEX gold rose $3 to $625.80 an ounce.

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