Market Minute: Chrysler's Iffy IPO; Applied Materials Buys Rival Chipmaker

Chrysler is set to go public -- maybe -- and a big international merger of semiconductor firms. Those stories and more are what's in Tuesday's Market Minute.

The Dow Jones industrial average (^DJI) fell 49 points Monday, the Standard & Poor's 500 index (^GPSC) lost 8 and the Nasdaq composite index (^IXIC) gave back 9 points.

Chrysler could become a public company once again -- probably early next year -- after filing for an IPO. The company almost went out of business a few years ago, but survived with the help of a big U.S. government bailout and an investment from the Italian automaker Fiat.

A United Auto Workers union trust owns a big chunk of Chrysler and forced the company to file for the IPO. The trust, known as VEBA, will get most of the proceeds. But analysts say the IPO could be canceled if the UAW trust reaches a sale agreement with Fiat. Shares of rivals General Motors (GM) and Ford (F) are both up about 30 percent so far this year.

Applied Materials (AMAT) has agreed to acquire Tokyo Electron. The semiconductor equipment maker will pay $9.4 billion.

United Technologies (UTX) is combining two of its best-known units -- its Carrier air conditioning business and its Otis Elevator operation. The aim is to cut costs and boost its share of overseas construction projects.

Lockheed Martin (LMT) could benefit from a political battle in South Korea. The government there has rejected a bid by Boeing (BA) to supply 60 warplanes, and Lockheed's F-35A is now considered the front-runner.

%VIRTUAL-article-sponsoredlinks%Abercrombie & Fitch (ANF) is reversing course. The retailer will allow employees to wear hijabs, or head scarves, in observance of Muslim custom. It's part of a settlement of a discrimination lawsuit filed against the company.

Homebuilder Lennar (LEN) has capitalized on the recent surge in home sales. Earnings rose a better-than-expected 39 percent and the company says its outlook remains "extremely bright."

But shares of Red Hat (RHT) are set to decline even though earnings and revenue topped expectations.

And Citigroup (C) has raised its price target on Facebook (FB) to $55 a share. Facebook shares closed Monday at about $47.

-Produced by Drew Trachtenberg.