Stocks rise on wave of deals and gains for tech companies
James Matthews, center, works with fellow traders on the floor of the New York Stock Exchange on Wednesday, Oct. 5, 2016. Credit: AP / Richard Drew
U.S. stocks rose Monday as investors were cheered by a spate of corporate dealmaking over the weekend. Technology companies made the biggest gains.
Companies announced almost $100 billion in deals over the last few days. Investors had mixed reactions to the moves, but they were pleased the companies were willing to spend.
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U.S. stocks rose Monday as investors were cheered by a spate of corporate dealmaking over the weekend. Technology companies made the biggest gains.
Companies announced almost $100 billion in deals over the last few days. Investors had mixed reactions to the moves, but they were pleased the companies were willing to spend.
“Any time you see a lot of IPOs, a lot of merger activity, it boosts confidence,” said Karyn Cavanaugh, senior markets strategist for Voya Investment Strategies.
Big-name technology companies including Apple and Alphabet, which owns Google, rose ahead of reporting their earnings this week. Amazon also rose, giving other consumer companies a boost. Energy companies slipped with the price of oil.
The Dow Jones industrial average gained 77.32 points, or 0.4 percent, to 18,223.03. The Standard & Poor’s 500 index rose 10.17 points, or 0.5 percent, to 2,151.33. Thanks to the big gains for tech companies, the Nasdaq composite climbed 52.42 points, or 1 percent, to 5,309.83.
Aviation electronics company Rockwell Collins agreed to buy commercial aircraft and business jet maker B/E Aerospace for $62 a share, or $6.4 billion in cash and stock. B/E Aerospace climbed $8.28, or 16.4 percent, to $58.89 while Rockwell Collins gave up $5.25, or 6.2 percent, to $79.21.
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