Investing.com - U.S. stocks opened sharply higher on Monday, after the release of mixed U.S. economic reports, while investors eyed the Federal Reserve's policy meeting later in the week.
During early U.S. trade, the Dow Jones Industrial Average jumped 1.05%, the S&P 500 index gained 0.85%, while the Nasdaq Composite index advanced 0.91%.
Market research group Markit said that its preliminary U.S. manufacturing purchasing managers’ index declined to a seasonally adjusted 54.4 this month from a final reading of 54.7 in November. Analysts had expected the index to inch up to 54.9 this month.
A separate report showed that U.S. industrial production rose by a seasonally adjusted 1.1% last month, above forecasts for a 0.5% gain.
Industrial production for October was revised up to a 0.15 increase from a previously reported decline of 0.1%.
Meanwhile, investors remained cautious ahead of the outcome of the Fed’s upcoming policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Insurance corporation American International Group surged 2.13% amid reports it is nearing a deal to sell its plane-leasing unit to AerCap Holdings for cash and stock.
The telecom sector was also active, after the Wall Street Journal reported that Sprint is looking at a possible bid for is rival, T-Mobile US. The deal could be worth USD20 billion and a merger of the third and fourth largest U.S. carriers would create a huge competitor to industry leaders Verizon Wireless and AT&T.
Sprint shares rallied 4.74% following the news, while T-Mobile US tumbled 1.16%.
In related news, Verizon Communications, up 2.36%, was reportedly near an agreement to purchase Intel's Internet-based pay-TV startup.
Elsewhere, Visa and MasterCard jumped 1.02% and 0.95% after the two companies won approval for a USD5.7 billion settlement that ended years of litigation with U.S. merchants over allegations that credit-card swipe fees are improperly fixed.
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 surged 1.93%, France’s CAC 40 rallied 1.49%, Germany's DAX jumped 1.89%, while Britain's FTSE 100 advanced 1.31%.
During the Asian trading session, Hong Kong's Hang Seng Index retreated 0.56%, while Japan’s Nikkei 225 Index plummeted 1.62%.
Also Monday, data showed that the preliminary reading of China’s HSBC manufacturing index ticked down to a three-month low of 50.5 in December from a final reading of 50.8 in November. Economists had expected the index to rise to 51.0.
During early U.S. trade, the Dow Jones Industrial Average jumped 1.05%, the S&P 500 index gained 0.85%, while the Nasdaq Composite index advanced 0.91%.
Market research group Markit said that its preliminary U.S. manufacturing purchasing managers’ index declined to a seasonally adjusted 54.4 this month from a final reading of 54.7 in November. Analysts had expected the index to inch up to 54.9 this month.
A separate report showed that U.S. industrial production rose by a seasonally adjusted 1.1% last month, above forecasts for a 0.5% gain.
Industrial production for October was revised up to a 0.15 increase from a previously reported decline of 0.1%.
Meanwhile, investors remained cautious ahead of the outcome of the Fed’s upcoming policy meeting on Wednesday, with some expecting the bank to announce a small reduction in the pace of its USD85 billion-a-month asset purchase program.
Insurance corporation American International Group surged 2.13% amid reports it is nearing a deal to sell its plane-leasing unit to AerCap Holdings for cash and stock.
The telecom sector was also active, after the Wall Street Journal reported that Sprint is looking at a possible bid for is rival, T-Mobile US. The deal could be worth USD20 billion and a merger of the third and fourth largest U.S. carriers would create a huge competitor to industry leaders Verizon Wireless and AT&T.
Sprint shares rallied 4.74% following the news, while T-Mobile US tumbled 1.16%.
In related news, Verizon Communications, up 2.36%, was reportedly near an agreement to purchase Intel's Internet-based pay-TV startup.
Elsewhere, Visa and MasterCard jumped 1.02% and 0.95% after the two companies won approval for a USD5.7 billion settlement that ended years of litigation with U.S. merchants over allegations that credit-card swipe fees are improperly fixed.
Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 surged 1.93%, France’s CAC 40 rallied 1.49%, Germany's DAX jumped 1.89%, while Britain's FTSE 100 advanced 1.31%.
During the Asian trading session, Hong Kong's Hang Seng Index retreated 0.56%, while Japan’s Nikkei 225 Index plummeted 1.62%.
Also Monday, data showed that the preliminary reading of China’s HSBC manufacturing index ticked down to a three-month low of 50.5 in December from a final reading of 50.8 in November. Economists had expected the index to rise to 51.0.