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New York - Wall Street traded slightly lower on Monday morning with major drug makers down following the announcement that Pfizer would buy the cancer drug maker Medivation for $14bn.
A half-hour into the morning's trading, the Dow Jones Industrial Average was down 0.3% at 18.490.15.
The broader S&P 500 fell 0.3% at 2 177.71 and the Nasdaq, where Medivation is listed, lost 0.1% at 5 231.47.
Markets were awaiting signals on US interest rate policy from this week's monetary symposium in Jackson Hole, Wyoming at which Federal Reserve Chairwoman Janet Yellen will deliver a closely watched address.
Shares in Medivation were up nearly 20% at $80.45 after Pfizer offered $81.50 a share for the company.
The deal will allow the New York-based Pfizer to market the prostate cancer medication Xtandi. Investors have focused on cancer drugs as they are among the most dependable sources of revenue for drug makers.
Tesoro, another comparably sized cancer drug maker listed on the Nasdaq, was also higher, at 3% above Friday's close.
Other major drug makers were split, with Johnson & Johnson down 0.6% but Merck & Company up 0.2%.
The Texas gas station and convenience store operator CST Brands rose 0.1% on the announcement of a deal to be purchased by Canada's Alimentation Couche-Tard for $4.4bn.
With crude prices falling at the start of the week, oil company stocks were likewise lower, with Chevron and Exxon Mobil both trading 0.7% lower and ConocoPhillips off 0.8%.
