Stocks mixed after holiday weekend; Coke falls

KEN SWEET AP Markets Writer Published:

NEW YORK (AP) -- Stocks were mixed mid-morning trading Tuesday as investors return from a long holiday weekend. Coca-Cola slumped after turning in disappointing quarterly results and health care stocks rose following news a big merger in the pharmaceutical sector.

KEEPING SCORE: The Dow Jones industrial average lost 11 points, or 0.1 percent, to 16,142 as of 10:45 a.m. Eastern. The Standard & Poor's 500 index was up a point, or 0.1 percent, to 1,840 and the Nasdaq composite was up 22 points, or 0.5 percent, to 4,266.

PHARMA DEAL: Forest Laboratories jumped $21.28, or 30 percent, to $92.70 after another drugmaker, Actavis, agreed to buy the company for $25 billion. Actavis makes the generic versions of hyperactivity disorder medication Concerta and the cholesterol drug Lipitor, while Forest makes the Alzheimer's treatment Namenda. Actavis rose $13.77, or 7 percent, to $206.67.

Other health-care stocks also rose. Gilead Sciences rose 2 percent and UnitedHealth Care and Amgen increased 1 percent in early trading.

LOSING ITS FIZZ: Coca-Cola dropped $1.50, or 4 percent, to $37.43 after reporting a decline in fourth-quarter profit and sales from a year ago. The company, which also makes Sprite, Dasani and Vitaminwater, says sales volume declined 1 percent in North America.

STELLAR WEEK: The stock market is coming off its best week of the year. The S&P 500 gained 2.3 percent last week. Investors liked what they heard from Federal Reserve Chair Janet Yellen, who said she planned to continue her predecessor's market-friendly policies for the time being. The market's turnaround last week was especially notable given the rough start to the year.

"I would be very surprised if we don't see the market move back to its highs very soon," said Randy Frederick, a managing director at Charles Schwab.

BACK FROM HOLIDAY WEEKEND: U.S. financial markets were closed Monday in observance of President's Day.