The Dow Jones industrials jump 410 points to 24,601 as S&P 500 adds 36 points at 2,656
CSRA shares surge more than 30% after a bid by General Dynamics
US Treasuries 10-year yield touches four-year high
Stocks extended gains for a second straight day Monday to help erase the memory of the worst week for equities two years.
The Dow Jones Industrial Average rose 410 points to 24,601 while the broader-based S&P 500 added 36 points to 2,657. The Nasdaq composite saw a 107-point increase to 6,981.
In Canada, the S&P/TSX index closed 205 points higher at 15,241.
The New York Fed's survey of consumer expectations showed median inflation expectations over the next year eased to 2.7% in January from the previous reading of 2.8%.
Meanwhile, the yield on US 10-year treasuries touched a new four-year high of 2.902% before settling back to close at 2.857%.
US consumer price data is due out later this week on Wednesday.
Open: Stocks were quick out of the traps
Stocks got off to a fast start, as expected, with early gains almost reaching the quantities seen in the whole of Friday's session.
The Dow Jones average was up 231 points at 24,422 and the S&P 500 was up 20 points at 2,640.
CSRA Inc (NYSE:CSRA), a provider of information technology services to the US government, opened sharply higher, up almost a third at US$40.49 after its board gave the green light to a takeover by General Dynamics Corp (NYSE:GD) worth US$40.75 a share.
CGG SA (NYSE:CGG), a manufacturer of geophysical equipment, shot up 37% to US$6 as it revealed the instruments to be issued as part of its financial restructuring plan.
Going the other way Dycom Industries Inc (NYSE:DY) after it lowered expectations for the second quarter of its fiscal year.
The provider of specialty contracting services throughout the United States and in Canada saw its shares sink 4.1% to US$106.63 after it blamed adverse weather conditions for hitting business in the three months to the end of January.
Pre-open: Strong start expected
US stocks were expected to continue Friday's rally, encouraged by strong showings in Europe.
The Dow Jones average, which soared 330 points on Friday to close at 24,191, was expected to open at around 24,487.
The broader-based S&P 500, which surged 39 points to close at 2,620 on Friday, was expected to open its account at around 2,650.
Also on the comeback trail was cryptocurrency Bitcoin, which was up 4.3% at US$8,671.
On the corporate front, retailer Loews Corporation (NYSE:L) was 3.7% higher at US$48.46 in pre-market trading after reporting a sharp rise in fourth-quarter earnings.
In the final three months of 2017, net income clocked in at US$481mln, or US$1.43 a share, up from US$290mln (86 cents a share) a year earlier.
CSRA Inc. (NYSE:CSRA) saw its shares shoot nearly 32% higher in pre-market trading after the government IT company agreed to around a US$6.68bn takeover bid from General Dynamics Corp. (NYSE:GD).
Under the terms of the deal, General Dynamics will pay US$40.75 in cash for each CSRA share, which is a 32% premium to Friday's closing price, and including debt values the firm at US$9.6bn.
Restaurant Brands International Inc (TSE:QSR), which operates Burger King fast food joints, disappointed with its quarterly trading statement.
Adjusted earnings per share for the final quarter of 2017 were six cents shy of the market's expectations at 66 cents.
Twenty-First Century Fox Inc (NASDAQ:FOX) stock was moving higher in Monday’s premarket dealing as reports emerged suggesting that Comcast Corporation (NASDAQ:CMCSA) is considering a fresh takeover approach.
Comcast had been rebuffed in its previous courtship attempt, as Fox was making goo-goo eyes at The Walt Disney Co (NYSE:DIS).
Comcast's offer was higher than Disney's but was rejected because of monopoly concerns.
Shares in Twenty-First Century Fox were up 2.2% in pre-market trading.