* Two-day Federal Reserve meeting begins on Tuesday
* Intel acquires Mobileye for $15.3 bln
* Valeant tumbles after Ackman sells stake
* Dow down 0.1 pct, S&P 500 up 0.04 pct, Nasdaq up 0.24 pct
(Adds Valeant after the bell, updates volume)
By Rodrigo Campos
NEW YORK, March 13 U.S. stocks ended little
changed in light volume on Monday, with traders eyeing a Federal
Reserve meeting expected to result in an interest rate increase
later this week.
The S&P 500 traded in its tightest range of the year, in and
out of slight losses, while the CBOE Volatility index was
on track to close at its lowest in more than a week.
Shares of Mobileye jumped nearly 30 percent to a
high of $61.51 after chipmaker Intel agreed to buy the
driverless technology maker for $15.3 billion. Mobileye closed
up 28.2 percent at $60.62 and Intel fell 2.1 percent to $35.16.
Investors looked ahead to the Fed's two-day meeting that
starts on Tuesday. Traders saw a 94 percent chance that the U.S.
central bank will lift interest rates by 25 basis points on
"Other than the Fed on Wednesday, I don’t see anything going
on to make any (investment) decisions on," said Paul Mendelsohn,
chief investment strategist at Windham Financial Services in
"Intel buying Mobileye is the story of the day, moving into
that market sector," he said, adding that they advised some
clients to "fade in" into Intel stocks. "We think this is a very
good support point," said Mendelsohn.
Nvidia rose 2.8 percent to $101.85 while Delphi
Automotive added 4.0 percent to $80.20. Both are
involved in developing technology for cars.
The Dow Jones Industrial Average fell 21.5 points, or
0.1 percent, to 20,881.48, the S&P 500 gained 0.87 point,
or 0.04 percent, to 2,373.47 and the Nasdaq Composite
added 14.06 points, or 0.24 percent, to 5,875.78.
After the bell, U.S.-traded shares of Valeant
Pharmaceuticals dropped 9.3 percent to $10.98 after
investor William Ackman, who had been its biggest cheerleader
for two years as the share price climbed and then plummeted, on
Monday said his hedge fund had sold its entire position.
During regular trading hours, Citrix Systems jumped
6.8 percent to $84.93 after Bloomberg reported that the
cloud-services company is working with advisers to seek
Wynn Resorts gained 4.8 percent to $104.30 after
Morgan Stanley reiterated its "buy" rating and said the company
could gain a meaningful market share in Macau.
About 6.18 billion shares changed hands in U.S. exchanges,
compared with the 6.93 billion daily average over the last 20
Advancing issues outnumbered declining ones on the NYSE by a
1.54-to-1 ratio; on Nasdaq, a 1.68-to-1 ratio favored advancers.
The S&P 500 posted 39 new 52-week highs and three new lows;
the Nasdaq Composite recorded 107 new highs and 48 new lows.
The S&P 500's average true range hit 5.9, its lowest of the
year. The year-to-date average of that daily measure of
volatility is 14.
(Reporting by Rodrigo Campos; Editing by Meredith Mazzilli and