Wall street stocks closed higher on Monday because of optimism around the planned lower-level trade talks between the US and China later this week.
A resurgence in deal-making activity also buoyed sentiment in several sectors.
The Dow Jones Industrial Average index added 0.35% to close at 25,758. Nike Inc, Johnson & Johnson, and Merck & Co Inc helped lead the way.
The S&P 500 rose 0.24% to end at 2,857. The tech-laden Nasdaq edged up 0.06% to settle at 7,821.
The Russell 2000 index of small-cap stocks gained 0.39% to conclude at 1,699.
In Toronto, the TSX crawled up 0.04% to finish at 16,331.
1:00 PM: US stocks gather steam on trade talk optimism and deal-making
All three major US stock indices rose midday on optimism around the planned lower-level trade talks between the US and China later this week. The resurgence in deal-making activity also boosted optimism in several sectors.
The Dow Jones Industrial Average index added 93.79 points, or 0.37% to 25,763.11, led higher by Nike Inc, Johnson & Johnson, and Merck & Co Inc.
Meanwhile, the S&P 500 rose nearly 7.42 points, or 0.28% to 2,857, lifted by American Airlines Group, Macy’s Inc and United Continental Holdings Inc.
With M&A activity heating up, the tech-laden Nasdaq, added 5.83 points, or 0.07% to 7,822.18 with Netflix Inc and JD.com both up over 3%.
The Russell 2000 index of small-cap stocks added 6.38 points, or 0.38% to 1,699.32.
10:00 AM: US stocks keep their positive course as deal-making activity lights fire under markets
US stocks climbed in morning trade as a resurgence in deal-making activity pushed up the markets.
Shortly after the opening bell, the Dow Jones Industrial Average index added 77 points to hover at 25,747, led higher by Nike, Pfizer, Johnson & Johnson, Cisco Systems and Goldman Sachs.
Gains from the S&P 500 were more muted as the index rose nearly 8 points to 2,857, pushed up by its best-performer Estee Lauder, which gained 4.6% after its fiscal fourth-quarter profit and sales figures crushed Wall Street’s expectations.
Sending off smoke signals about the return of deal making, PepsiCo (NASDAQ:PEP) moved to buy Sodastream International Ltd (NASDAQ:SODA) for US$3.2bn in a bid to widen its business beyond sugary sodas.
Shares in SodaStream gained 9.7% to US$142.48 on the acquisition while Pepsi shares held steady at US$115.30.
In related merger news, Tyson Foods (NYSE:TSN) also confirmed it would acquire the Keystone Foods business from Marfrig Global Foods for US$2.16bn in cash. Tyson Foods shares kept their course at US$62.43.
Helped by the tie-up between Pepsi and SodaStream, the tech-laden Nasdaq, meanwhile, added 2.5 points to 7,819.
Elsewhere, Toronto’s TSX jumped by 4.5 points to 16,328 while the Russell 2000 index of small-cap stocks added 4.3 points to trade at 1,697.