Stocks Shrug Off Citigroup and UBS Subprime Reports

Wall Street rose moderately in early trading Monday as a major acquisition by Nokia (NOK)helped offset trader unease over profit warnings from two major global banks.

In the first few minutes of trading, the Dow Jones industrial average rose 46.41, or 0.33 percent, to 13,942.04.

Broader market indexes were slightly higher. The Standard & Poor's 500 index rose 5.09, or 0.33 percent, to 1,531.84; and the Nasdaq composite index rose 12.80, or 0.47 percent, at 2,714.30.

Nokia's $8.1 billion offer to buy navigation-software maker Navteq Corp. (NVT) reassured traders that acquisition activity might pick up as Wall Street begins the fourth quarter. The deal was seen as a signal that corporations are feeling comfortable in making big moves despite recent market turbulence.

However, enthusiasm about the deal was tempered after both Citigroup Inc. (C) and Switzerland's UBS AG (UBS) warned that credit market upheaval took its toll on third-quarter results. Citi said profit will fall 60 percent, while UBS expects a loss for the period.

Investors also awaited key data on the health of the manufacturing sector. The Institute for Supply Management is expected to report that manufacturing activity grew at roughly the same rate in September as in August, according to economists surveyed by Thomson Financial. Later in the week, investors will watch for readings on the health of the service sector and employment.