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U.S. stocks advance on deals and mergers; Dow Jones up 0.61%

Published 08/23/2010, 10:09 AM
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Investing.com – U.S. stock markets were higher after the open on Monday, after a flurry of deals and potential mergers boosted market sentiment.

During early U.S. trade, the Dow Jones Industrial Average was up 0.61%; the S&P 500 index climbed 0.65% and the Nasdaq Composite index advanced 0.47%.

Earlier in the day, it was reported that technology giant Hewlett-Packard had successfully outbid competitor Dell for data storage company 3PAR. Following the report, shares in HP shed 0.14% while shares in 3PAR soared 39.69%.

Meanwhile, shares in Dell advanced 1.09% following the news.

Shares in the Potash Corporation of Saskatchewan gained 1.81% after reports that the company, which is trying to fend off a hostile takeover from BHP Billiton, had received approaches from potential investors.

Elsewhere, shares in insurance corporation American International Group gained 1.17% following reports that the U.S. Federal Reserve is to reduce the group's line of credit. The group received federal aid last year after losing access to credit markets.

In the commodities sector, crude oil prices gained 0.41% to hit USD 74.34 a barrel, though prices remained close to last weeks 6-week low.

Across the Atlantic, European stock markets rallied: France’s CAC 40 surged 1.56%; Germany's DAX rose 0.74%; Britain's FTSE 100 jumped 1.29%; and the EURO STOXX 50 soared 1.42%.

Earlier in the day, data showed that the euro zones manufacturing PMI fell more-than-expected in August while the services PMI declined in line with expectations.

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