* Caterpillar, EMC both in multibillion dollar deals
* Retail sales top forecast, NY manufacturing weakens
* Internet stocks fall, pressuring Nasdaq
* Indexes up; Dow 0.5 pct, S&P 0.4 pct, Nasdaq 0.3 pct
* For up-to-the-minute market news see [STXNEWS/US] (Updates to midmorning)
By Ryan Vlastelica
NEW YORK, Nov 15 (Reuters) - U.S. stocks rose on Monday as a pair of large acquisition proposals suggested investors see value in certain stocks at current elevated levels in a trend that could carry the market through year end.
Strong October retail sales also helped offset persistent weakness in Internet shares.
Coming off a steep selloff Friday that ended a five-week winning streak, investors also fretted over weakened New York manufacturing data and lingering European sovereign debt woes.
Caterpillar Inc
Other mining equipment shares gained. Terex Corp
In other M&A action, data storage equipment maker EMC Corp
"Continued M&A is the best thing going on in the market right now, and I'm expecting this activity to fuel a 100-point rally in the S&P by the end of the year," said Uri Landesman, president of the New York-based hedge fund manager Platinum Partners.
Retail sales posted their largest gain in seven months, boosted by purchases of motor vehicles and building materials. Separately, a gauge of manufacturing in New York state fell in November to its lowest level since April 2009. [ID:nN15239736]
"The consumer is one of the stronger areas of the economy right now, so while what we're seeing isn't thrilling, it is a positive datapoint," Landesman said.
A slump in Internet shares limited gains, with Amazon.com
Inc
The Dow Jones industrial average <.DJI> was up 54.00 points, or 0.48 percent, at 11,246.58. The Standard & Poor's 500 Index <.SPX> rose 5.13 points, or 0.43 percent, at 1,204.34. The Nasdaq Composite Index <.IXIC> was up 6.51 points, or 0.25 percent, at 2,524.56.
The S&P 500 dipped below its 20-day moving average on Friday for the first time since Sept. 1, but managed to close above it in a sign the level, measured just above 1,194, could provide strong technical support.
Ireland didn't rule out the need to turn to Europe for help in dealing with its debt crisis, but said no application had been made for assistance yet. [ID:nLDE6AE063]
Concerns over euro zone sovereign debt have pressured equities in recent weeks along with persistent worries that China may raise interest rates. An offsetting factor was upbeat growth data from Japan. [ID:nTOE6AB087]
Lowe's Cos Inc
Business inventories rose 0.9 percent in September, compared with the 0.8 percent expectation. [ID:nN12138459] (Editing by Jeffrey Benkoe)