Wall Street was mixed amid better-than-expected report on US consumer spending and disappointing corporate earnings such as from Exxon Mobil.
Meanwhile, the flurry of corporate deals continued as General Electric and Baker Hughes agreed to merge their oil and gas businesses, while Level 3 Communications accepted a US$34 billion cash-and-stock takeover offer from CenturyLink.
A Commerce Department report showed that US consumer spending, a strong driver of the US economy, rose 0.5 per cent in September, following a 0.1 per cent decline in August. The Federal Reserve is starting its two-day policy meeting on Tuesday. While few expect policy makers to hike interest rates this month, most expect a move in December.
"The latest data should be of comfort to the Fed," Greg Daco, head of US macroeconomics at Oxford Economics in New York, told Reuters. "Spending continues to underpin growth and, combined with positive developments on the labour market and inflation, should enable the Fed to tighten policy in December."
Wall Street was mixed. In 2pm trading in New York, the Dow Jones Industrial Average eked out a 0.2 per cent gain, while the Nasdaq Composite Index inched 0.08 per cent higher. In 1.46pm trading, the Standard & Poor's 500 Index rose 0.15 per cent.