Dell (nasdaq: DELL - news - people) announced a $3.9 billion deal to acquire IT firm Perot Systems (nyse: PER - news - people). Shares of Perot surged toward the $30-per-share bid price out of the gate, then held their gains, up 65.1% at $29.56. Dell was down 4.1%, and executives said the blockbuster deal doesn’t mean they are done making acquisitions.

The Nasdaq was leading its fellow averages, gaining 5 points, or 0.2%, to 2,138; while the Dow lost 41 points, or 0.4%, to 9,779; and the S&P 500 fell 4 points, or 0.3%, to 1,065.

Shares of American International Group (nyse: AIG - news - people) jumped 21.3%, despite mixed views on whether the insurer will be able to repay government bailout loans. AIG has drawn down $80 billion out of up to $182.5 billion made available by the Treasury Department and Federal Reserve, but the Government Accountability Office said credit and investment risks mean taxpayers may not see the loans repaid in full.

Caterpillar (nyse: CAT - news - people) slipped 1.8% after dealer statistics showed a 48% decline in retail machine sales in the June-August period. Meanwhile, home builder Lennar (nyse: LEN - news - people) sank 3.1%, after recording a wider-than-expected loss in its third quarter due to fewer orders, lower prices and a higher cancellation rate.

Lennar's report comes ahead of key housing data due later in the week, including sales of new and existing homes, and a federal gauge of house prices. Investors will also have an eye on the latest update on consumer sentiment from the University of Michigan's survey, and the Federal Reserve's two monetary policy meeting that begins Tuesday.

The economic calendar was light Monday though, with only the Conference Board's report on leading indicators drawing much attention. The index was up 0.6% for August, its fourth-straight positive month, but slightly weaker than July's 0.9% advance.

General Electric (nyse: GE - news - people) shares got some buzz amid reports the conglomerate could be poised to spin off its NBC Universal unit in the coming years. Speculation that Vivendi, which owns a 20% stake, could sell its interest in the business next year sparked the renewed chatter about the future of NBCU. GE was up 1.6%. (See "GE's Bullish Breakout.")

Thomson Reuters contributed to this report.

The Nasdaq set the pace for the comeback, rallying into positive territory--up 6 points, or 0.3%, to 2,139--on the heels of a $3.9 billion takeover announcement in the technology sector. Dell (nasdaq: DELL - news - people) said it will shell out $30 a share to acquire IT firm Perot Systems (nyse: PER - news - people), and execs suggested the deal may not be the last for the computer maker. Shares of Dell were down 67 cents, or 4%, to $16.02; while Perot surged $11.69, or 65.3%, to $29.60.

The Dow Jones industrial average was still down 28 points, or 0.3%, to 9,792; while the S&P 500 was off 3 points, or 0.3%, to 1,065.

Caterpillar (nyse: CAT - news - people) slipped 50 cents, or 0.9%, to $52.92 after dealer statistics showed a 48% decline in retail machine sales in the June-August period. Meanwhile, home builder Lennar (nyse: LEN - news - people) sank 63 cents, or 3.8%, to $15.91 after recording a wider-than-expected loss in its third quarter due to fewer orders, lower prices and a higher cancellation rate.

Lennar's report comes ahead of key housing data due later in the week, including sales of new and existing homes, and a federal gauge of house prices. Investors will also have an eye on the latest update on consumer sentiment from the University of Michigan's survey, and the Federal Reserve's two-day monetary policy meeting that begins Tuesday.

The economic calendar was light Monday though, with only the Conference Board's report on leading indicators drawing much attention. The index was up 0.6% for August, its fourth-straight positive month, but slightly weaker than July's 0.9% advance.

General Electric (nyse: GE - news - people) shares got some buzz amid reports the conglomerate could be poised to spin off its NBC Universal unit in the coming years. Speculation that Vivendi, which owns a 20% stake, could sell its interest in the business next year sparked the renewed chatter about the future of NBCU. GE was up 27 cents, or 1.6%, to $16.77. (See "GE's Bullish Breakout.")

Thomson Reuters contributed to this report.

Dell (nasdaq: DELL - news - people) shares slipped 69 cents, or 4.1%, to $16.00 after the computer maker said it will pay about $3.9 billion in cash to acquire information technology firm Perot Systems (nyse: PER - news - people). Perot shot up $11.73, or 65.5%, to $29.64 on the news, rallying toward the $30-per-share offer price.

Biopharmaceutical company Nektar Therapeutics (nasdaq: NKTR - news - people) was among the morning's big winners after inking a licensing agreement with AstraZeneca (nyse: AZN - news - people) for a pair of constipation drugs. Shares of Nektar surged 84 cents, or 9.9%, to $9.30. NYSE-traded American depositary receipts of AstraZeneca were up 13 cents, or 0.3%, to $45.33.

The major U.S. equity indexes slumped at the open, with the Dow Jones industrial average down 84 points, or 0.9%, to 9,737; the S&P 500 off 11 points, or 1%, to 1,058; and the Nasdaq losing 13 points, or 0.6%, to 2,120. Monday morning's losses follow weakness abroad as Asian and European stock averages also faltered.

Home builder Lennar (nyse: LEN - news - people) was down $1.02, or 6.2%, to $15.52 after its third-quarter loss was wider than analysts expected. The company recorded fewer new home orders, lower prices and a higher cancellation rate, but did manage to improve its gross margins from the prior quarter.

Lennar's report comes ahead of key housing data due later in the week, including sales of new and existing homes, and a federal gauge of house prices. Investors will also have an eye on the latest update on consumer sentiment from the University of Michigan's survey, and the Federal Reserve's monetary policy meeting.

The economic calendar was light Monday though, with only the Conference Board's report on leading indicators drawing much attention. The index was up 0.6% for August, its fourth-straight positive month, but slightly weaker than July's 0.9% advance.

Dell (nasdaq: DELL - news - people) said it plans to buy information technology provider Perot Systems (nyse: PER - news - people) for $30 a share in cash, a deal worth about $3.9 billion. Shares of Dell slipped 3.8% in early trading; while Perot shot up 65.5%.

The major indexes opened lower, with the Dow Jones industrial average down 77 points, or 0.8%, to 9,743. The Standard & Poor's 500 fell 9 points, or 0.8%, to 1,059; and Nasdaq lost 13 points, or 0.6%, to 2,120 as U.S. averages followed Asian and European bourses lower.

Home builder Lennar (nyse: LEN - news - people) was down 5% after its third-quarter loss was wider than analysts expected. The company recorded fewer new home orders, lower prices and a higher cancellation rate, but did manage to improve its gross margins from the prior quarter.

Lennar's report comes ahead of key housing data due later in the week, including sales of new and existing homes, and a federal gauge of house prices.

Europes's 50 leading shares were down by 0.9% in afternoon trading on Monday, with London's FTSE fell 0.8%, France's Cac-40 0.6% lower and Germany's Dax down 1.4%.

Banks were among the FTSE 100's worst performers, led lower by Royal Bank of Scotland (nyse: RBS - news - people), down 4.5%.

RBS is reportedly talking to investors to gauge support for a "modest" equity placement of 3 billion pounds ($4.91 billion) to 4 billion pounds ($6.54 billion), with the share issue to be used to replace a small portion of the government's economic interest in the bank, Reuters reported Sunday.

Separately, Spanish bank Santander (nyse: STD - news - people)said it plans to list about 16.21% of its Brazilian unit through a capital increase. Shares of Santander fell 1.5% by midday in Madrid.

Energy shares rose despite a fall in oil prices. Crude prices fell by $1.53 to trade at $70.50 a barrel on the New York Mercantile Exchange. BP (nyse: BP - news - people) rose .4%, Royal Dutch Shell (nasdaq: RDSA - news - people) rose 0.6%.

In other economic news, the Bank of England said the financial crisis has helped to rebalance the global economy but more structural changes are needed to prevent imbalances from returning once the recovery is underway.

"The financial crisis may have led overseas investors to reassess their willingness or ability to purchase sterling assets and thereby finance the U.K. trade deficit. As a result, the long-run sustainable real sterling exchange rate ... may have fallen," the central bank added. The British pound hit a five-month low against the euro following the bank's warning.

Thomson Reuters contributed to this article.