Profit Takers Pare Back Stocks Slightly

News at a Glance

• Indexes Ebb: Traders pause after Friday rally.
• Rate Talks: Fed releasing policy statement Wednesday.
• Digital Deal: Publicis buying MSFT's Razorfish $530 million.
• Earnings Mix: Dish drops 81%, Allied Capital loss narrows.

The Lowdown

Corporate News

• The Swiss cabinet met Monday to discuss UBS's (UBS) Friday meeting with the U.S. government over tax evasion by the bank's clients, Reuters reported. Switzerland and the U.S. failed Friday to agree on a settlement that would let UBS avoid a tax trial. The two governments have agreed to a deal in principle, and a settlement is expected to include the disclosure of 52,000 U.S. clients holding secret Swiss accounts. Talks will continue until a conference scheduled for Wednesday.
• The author of an online article accusing Rio Tinto (RTP) of spying in China to overcharge the Chinese steelmakers has said the article was his own opinion and used previously published data, Bloomberg reported Monday, citing an interview with the author. A Chinese government Web site posted an article Sunday, saying the Australian mining company illegally spied for six years to get information that allowed it to unfairly raise prices for Chinese steelmakers, amounting to more than $100 billion in excess iron ore charges. China has detained four of Rio's Shanghai employees, alleging they stole state secrets. The detentions have caused heightened tensions between China and Australia four months after Rio abandoned a deal with Aluminum Corp. of China.
• Publicis agreed to buy Razorfish, Microsoft's digital marketing unit, for $530 million in cash and stock, the companies announced Sunday. The companies also announced an expanded five-year marketing partnership, including the opportunity for Publicis clients to buy Microsoft search advertising on favorable terms in exchange for guaranteed purchasing levels.

The Economy

• There are no significant economic indicators scheduled to be released Monday.