Stocks Dropped Follow Global Markets Downward

U.S. stocks dropped sharply in the early trading on Monday following declines in Europe and Hong Kong. The Dow Jones Industrial Average lately fell 151.22 points, or 0.88%, to 16,961.93. The S&P 500 fell 17.14 points, or 0.86%, to 1,965.71. The Nasdaq Composite fell 39.47 points, or 0.87%, to 4,472.72.

Consumer spending rebounded toward the end of the summer as Americans bought more cars, electronics and furniture. Consumer spending rose by a seasonally adjusted 0.5% in August after no change in the prior month, the Commerce Department said Monday.

Chicago Federal Reserve Bank President Charles Evans detailed to a group of economists the reasoning behind his call for restraint on rate increases, even if the result is inflation temporarily breaching the Fed’s
target of 2 percent.

Encana, one of Canada’s biggest producers of natural gas and oil, agreed on Monday to buy Athlon Energy Inc. for $5.9 billion in a move to gain a foothold in one of North America’s most oil-rich regions.

Tibco Software Inc. (TIBX) said Monday it has agreed to be acquired by private equity firm Vista Equity
Partners for $24 a share in cash, or $4.3 billion including debt.

Lenovo Group Ltd. is setting an ambitious goal of becoming the world’s largest computer-server maker, as it expects to complete its $2.1 billion acquisition of International Business Machines Corp.’s low-end server business this week.