Resurgent takeover activity ended a five-day losing street on Wall Street, pushing stocks back into positive territory this year.The Dow Jones Industrial Average closed 103.84 points, or 1.0%, higher at 10,405.85 as investors focused on a spike in mergers
Resurgent takeover activity ended a five-day losing street on Wall Street, pushing stocks back into positive territory this year.
The Dow Jones Industrial Average closed 103.84 points, or 1.0%, higher at 10,405.85 as investors focused on a spike in mergers and acquisitions.
It was the Dow's best session in two weeks with all but one of its 30 components rising, including Wal-Mart and Home Depot , both of which reported earnings that beat expectations.
The Nasdaq Composite gained 1.3% to 2209.44 and the S&P 500 index climbed 1.2% to 1092.54, led by its materials sector, which rose after Potash Corporation of Saskatchewan rejected a $US38.56 billion takeover bid from UK mining giant BHP Billiton.
Potash soared 26%, while US shares of BHP dropped 2.1%. Fellow fertiliser companies gained on the news, including CF Industries, up 5.5%, and Monsanto, which climbed 2.2%. .
Hefty rubbish bag maker Pactiv gained 5.3% after it agreed to be acquired by New Zealander Graeme Hart’s Reynolds Group Holdings for about $US4.6 billion, excluding debt.
On Monday, technology stocks rose in the wake of computer giant Dell's takeover bid for data-storage company 3Par.
Other markets: Europe up, Asia mixed
European stocks ended positively on a rise in the euro and stronger US economic data.
The Stoxx Europe 600 index ended up 1.1% at 258.47, its fourth consecutive rise. The UK's FTSE 100 closed up 1.4% at 5350.55, Germany's DAX gained 1.6% to 6206.40 and France's CAC-40 closed 1.8% higher at 3663.13.
Asian stock markets ended mostly higher as investors sought out undervalued assets and currencies.
Tokyo stocks were an exception to the rising trend, ending at a fresh-year-to-date low as stronger yen worries continued to weigh on exporters.
The Nikkei Stock Average ended 0.4% lower at 9161.68, its lowest closing level since November 27, 2009.
Australia's S&P/ASX 200 rose 0.9% to 4476.98, Korea's Kospi Composite added 0.7% to 1755.03, Hong Kong's Hang Seng Index nudged 0.1% higher to 21,137.43 and China's Shanghai Composite added 0.4% to 2671.89.
Singapore's Straits Times Index edged down 0.4% to 1953.02, Taiwan's Taiex fell 0.1% to 7931.09 and India's Sensex was unchanged at 18,048.85.
Commodities: Oil, gold up
Crude futures rose after five days of losses, boosted by a rebound in equities markets. Light, sweet crude for September delivery recently traded 72USc, or 1%, higher at $US75.96 a barrel in New York. Brent crude on the ICE futures exchange traded $1 higher at $76.63 a barrel.
Gold futures rebounded as a weaker dollar helped bring prices back to a six-week high. The December contract added $US1.40, or 0.1%, to $US1227.60 an ounce in New York, a level not seen since late June.
Currencies: Yen down, euro up
The US dollar advanced modestly against the yen but weakened on the euro as better-than-expected U.S. industrial data lifted the mood in markets.
The euro also strengthened against the yen and Swiss franc after strong demand for Irish and Spanish government bonds.
Separately, investors were carefully watching the dollar's movements against the yen amid speculation that Japanese officials may intervene in currency markets to combat recent yen strength. This caution effectively pinned the two currencies into a narrow range.
The euro had moved to $US1.2891 from $US1.2821 late on Monday. The dollar was at ¥85.56 from ¥85.33. The euro strengthened to ¥110.30 from ¥109.35.
The UK pound weakened to $US1.5583 from $US1.5653. The dollar strengthened to 1.0430 Swiss francs from 1.0399 francs.
