NEW YORK — Investors rejoiced over Europe last week. On Monday, they got back to worrying about the United States.
Stocks struggled to stay out of the red in quiet holiday-week trading after a trade group said American manufacturing shrank in June for the first time in almost three years.
The Dow Jones industrial average was higher in early trading but fell after the manufacturing report came out at 10 a.m. and never recovered. It finished down 8.70 at 12,871.39.
The S&P 500 and the Nasdaq index both finished slightly higher. The S&P rose 3.35 to 1,365.51. The Nasdaq rose 16.18 to 2,951.23.
The government did report a sliver of good news about the U.S. economy Monday, though investors seemed underwhelmed: Construction spending rose in May by 0.9 percent, the most in five months.
NEW YORK — GlaxoSmithKline PLC will pay $3 billion and plead guilty to promoting two popular drugs for unapproved uses and to failing to disclose important safety information on a third in the largest health care fraud settlement in U.S. history, the Justice Department said Monday.
Accompanying the criminal case was a civil settlement in which the government said the company’s improper marketing included providing doctors with expensive resort vacations, European hunting trips, high-paid speaking tours and even tickets to a Madonna concert.
The criminal-civil fine will be the largest penalty ever paid by a drug company, officials said.
SEATTLE — Microsoft is absorbing a $6.2 billion charge to reflect its inability to produce more revenue from an online ad service that it bought nearly five years ago. The charge could saddle Microsoft with a loss for its fiscal fourth quarter ending in June.
The software maker blamed the setback primarily on the disappointing performance of aQuantive. That’s an online advertising service that Microsoft bought in 2007 for $6.3 billion. It was the most expensive acquisition in the company’s 37-year history at the time, surpassed only by the $8.5 billion purchase of Skype last year.
The charge represents Microsoft’s acknowledgement that aQuantive didn’t increase the company’s online ad revenue as much as anticipated. Since it bought aQuantive, Microsoft’s online division has reported losses totaling nearly $9 billion.
DALLAS — Dell is buying Quest Software for $2.4 billion to expand its offerings as its personal computer business weakens in an era of smartphones and sleeker devices like the iPad. Buying Quest will more than double the size of Dell’s software business.
The deal capped off a bidding war that began last month when Quest revealed a mystery suitor had made an offer trumping a $2 billion sale that had been worked out with Insight Venture Partners in March. The bidder turned out to be Dell, the second largest PC maker in the U.S. behind Hewlett-Packard.
Dell prizes Quest primarily for its nearly 1,300 engineers and its stable of software designed for businesses and government agencies. In particular, Dell is counting on Quest to help sell more servers, networking and storage products and computing services all of which are typically more profitable than PCs these days.