Caterpillar data offset finance reform fear

ASSOCIATED PRESS

The stock market closed narrowly mixed Monday after a strong earnings report from Caterpillar Inc. offset investors' concerns about financial regulation.

Banking shares fell as negotiations on financial overhaul legislation continued in Washington.

Caterpillar, whose results are seen as an economic indicator, reported earnings that beat analyst expectations after a one-time charge related to health care. The company said that economic conditions were "definitely improving" and that orders for its heavy equipment were significantly higher than last year.

Investors also got good news from Whirlpool Corp., which said profits doubled on higher sales of appliances in the United States and other countries. That's a signal that consumer spending is picking up.

News that car rental company Hertz Global Holdings Inc. agreed to buy rival Dollar Thrifty Automotive Inc. also helped stocks.

The Dow Jones industrial average rose 0.75, or less than 0.1 percent, to 11,205.03. The Standard & Poor's 500 index fell 5.23, or 0.4 percent, to 1,212.05, while the Nasdaq composite index fell 7.20, or 0.3 percent, to 2,522.95.

Caterpillar rose $2.87, or 4.2 percent, to close at $71.65.

Hertz, the world's largest car rental company, agreed to buy rival Dollar Thrifty for almost $1.2 billion in cash and stock. Hertz closed up $1.81, or 14.1 percent, at $14.69, while Dollar Thrifty rose $4.22, or 10.9 percent, to $43.07. Investors view mergers-and-acquisition activity as a sign of investor confidence about the economy.

Investors also got some reassurance about Greece's debt problems. The Greek government on Friday said it wanted to tap a rescue package from 15 European countries and the International Monetary Fund. Investors have been concerned that Greece could default on its debt and that the trouble there would spread to other countries.

Financial shares slid as negotiations on financial overhaul legislation continued in Washington.

JPMorgan Chase & Co. lost $1.05, or 2.3 percent, to $43.89, while Bank of America Corp. shed 38 cents, or 2.1 percent, to $18.05.

Citigroup Inc.'s shares fell 5.1 percent after the Treasury said it planned to sell up to 1.5 billion shares of Citigroup stock, its latest move to unwind the support it provided big banks during the financial crisis. Citi shares fell 25 cents to $4.61.