Wall Street rose more than 1 percent today, bouncing back sharply from last week's steep lows, helped by optimism around China and Greece, and as Warren Buffett's latest billion-dollar deal showed the M&A boom was alive and well.
Buffett’s boost helped New York’s blue-chip stocks break a seven day losing streak.
The S&P 500 (INDEXSP:.INX) climbed 1.2 percent to 2,103.06 at 3:35 p.m in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) added 1.3 percent to 17,604.38, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) rose 1.1 percent to 5,099.87.
Downbeat data out of China boosted hopes for additional stimulus from Beijing, while Greece and international creditors are close to finalizing a multi-billion euro bailout accord.
Precision Castparts (NYSE:PCP) surged 19.1 percent to $231.00. The maker of equipment for the aerospace and energy industries agreed to be sold to Buffett’s Berkshire Hathaway (NYSE:BRK.A) in a deal valued at $37.2 billion, including debt. Berkshire shares fell 0.2 percent to $215,00.00.
IBM (NYSE:IBM) rose 1.2 percent to $156.91 after Buffett's comments on CNBC were interpreted to mean that he would be interested in buying more stock in the tech hardware firm.
Twitter (NYSE:TWTR) leaped 9.3 percent to $29.55 after the microblogging site announced a new multiyear partnership with the National Football League (NFL) to deliver uniquely packaged official NFL video and other types of content to fans daily, year-round.
Alibaba (NYSE:BABA) gained 2.2 percent to $80.56. The Chinese e-commerce giant will take a 19.99 percent stake, 28.3 billion yuan ($4.56 billion), in Chinese electronics retailer Suning Commerce Group.
Mallinckrodt (NYSE:MNK) rose 2.9 percent to $103.25, reversing an earlier gain. The Irish drugmaker said it would buy immunotherapy company Therakos in a deal valued at about $1.33 billion.
Dean Foods (NYSE:DF) fell 3.9 percent to $17.04 after the largest U.S. dairy processor reported a larger-than-expected decline in second-quarter sales, weakened by lower volumes.
CVR Partners (NYSE:UAN) dropped 2.3 percent to $10.45. The ammonia maker said it would acquire Rentech Nitrogen Partners (NYSE:RNF) for about $533 million. Rentech soared 27.8 percent to $13.16.
In commodities, gold futures for December delivery inched up 0.9 percent to settle at $1,104.10 an ounce.
West Texas Intermediate crude for September delivery on Nymex rose 2.5 percent to settle at $44.96 a barrel.