MARKET SNAPSHOT: U.S. Stocks Hesitantly Higher In Light, Summer Trade

By Kate Gibson

U.S. stocks on Tuesday wobbled slightly higher in light volume, as energy shares fronted limited gains and after mixed data on the housing front and a better-than-forecast rise in consumer confidence.

One veteran market expert said the few traders working Tuesday were likely more interested in presumed presidential nominee Barack Obama's stance on the capital gains tax than on the usual market fare.

"There is going to be more attention paid to what is happening at the Democratic National Convention than the economic data calendar. This is the only week of the year when politics can take over economic data, geopolitical concerns and commodity prices," said Art Hogan, chief market strategist at Jefferies & Co.

After traveling in positive and negative turf, the Dow Jones Industrial Average (DJI) was recently up 9.44 points to 11,395.69, with 13 of its 30 components trading higher, led by financial shares including J.P. Morgan Chase ( JPM) and American International Group Inc., (AIG), both up about 2%.

As of Monday's close, the blue-chip index was on track for a monthly gain, up 0.7% in August, with the U.S. consumer services index climbing the most, posting a 3.73% gain, according to preliminary figures released Tuesday by Dow Jones Indexes.

The initial look at the still-to-be completed month had the U.S. consumer services index climbing the most, posting a 3.73% gain, while the Dow Jones U.S. Basic Materials Index lost the most, falling 6.09% in August, Dow Jones Indexes said.

UPDATE: Alpharma Rejects $1.4 Billion Bid From King

By Val Brickates Kennedy

BOSTON (Dow Jones) -- King Pharmaceuticals said early Friday that fellow specialty drugmaker Alpharma Inc. has rejected its takeover bid of $1.4 billion in cash.

King (KG) said in a statement Friday that is has formally offered $33 a share in cash for Alpharma (ALO), an offer that represents a 37% premium over Alpharma's closing stock price on August 21. King added the offer was not contingent on financing.

The bid also represents a 49% premium over an initial written offer submitted to Alpharma on Aug. 4, King said.

But King also revealed that Alpharma's board has rejected the offer. King added that it was making its bid public in an effort to make shareholders aware of what it called a "compelling" offer.

"We believe our all-cash proposal is too compelling to ignore. In light of the fact that the Alpharma Board declined this proposal, we think it is important for the stockholders of both companies to be aware of this exciting opportunity. It remains our strong preference to work cooperatively with Alpharma regarding this proposal," said Brian Markison, King's chief executive officer, in a statement.