Stock indexes holding at record levels

Stocks are edging higher, keeping indexes at record levels, as investors assessed some mixed reports on the economy as well as some news on business deals.

The Standard & Poor's 500 index fell one point, or 0.1 percent, to 2,016 in late afternoon trading. The Dow Jones industrial average dropped 31 points to 17,358. The Nasdaq composite gained four points, or 0.1 percent, to 4,633.

RECORD RUN: The S&P 500 and the Dow closed at all-time highs on Friday after the Bank of Japan surprised investors by announcing it would increase its bond and asset purchases in an effort to stave off deflation. Strong company earnings also helped the stock market recover from an early October slump.

OCTOBER MANUFACTURING: U.S. factories were busier in October. Orders, productivity and hiring all grew faster than they did in September, according to a private survey. The Institute for Supply Management, a trade group of purchasing managers, reports that its manufacturing index rose to 59 last month from 56.6 in September. Any reading above 50 signals expansion. The increase reverses a drop in September.

A separate report showed that U.S. construction spending fell for a second straight month in September as a slight rebound in housing was offset by further declines in nonresidential building and in government projects.

DEAL NEWS: French advertising group Publicis said Monday it would to buy Boston-based marketing, communications and consulting firm Sapient for $3.7 billion in cash. Sapient's stock soared $7.29, or 42 percent, to $24.62.

LabCorp will pay about $6.1 billion in cash and stock to buy Covance in a tie-up that aims to improve clinical trial research for pharmaceuticals. Covance shareholders will receive $75.76 in cash and a portion of LabCorp stock for each share they own. Covance's stock surged $20.11, or 25 percent, to $100.02.

BUSY WEEK AHEAD: The manufacturing reports kick off what's likely to be a busy week in the financial markets. The European Central Bank meets on Thursday to decide whether it will take more steps to stimulate the region's ailing economy. And on Friday the U.S. government releases its monthly jobs report. Now that the Federal Reserve has shut down its bond-buying program, investors are assessing when the Fed will start to raise interest rates.