NEW YORK: US stocks rose on Monday, extending a rally from the previous session as investors grew more confident in the economy's strength and Federal Reserve policy.
Merger activity and corporate restructuring also boosted equities, with the S&P 500 advancing above its 50-day moving average for the first time since Sept. 29, a sign that near-term momentum is improving.
Tech shares were among the strongest of the day after Hewlett-Packard Co said it would split into two public companies, sending shares up 4.2 per cent to $36.68 on heavy volume.
Separately, Becton Dickinson & Co agreed to buy CareFusion Corp for $12.2 billion in cash and stock.
Becton jumped 6.8 per cent to $123.52 while CareFusion was up 23 per cent to $56.96 as the S&P 500's biggest gainer.
The S&P 500 index had posted its best day since August on Friday, lifted by a stronger-than-expected jobs report that boosted optimism about the economy, while the Federal Reserve was not seen as speeding up its timeline for raising interest rates.
Market volatility has been higher of late, with equities notching big swings amid unrest in Hong Kong and concerns about Ebola in the United States. Those issues could continue to drive trading. The CBOE Volatility index fell 1.6 per cent to 14.32, well below its long-term average of 20.
The Dow Jones industrial average was rising 76.01 points, or 0.45 per cent, to 17,085.7, the S&P 500 was gaining 8.18 points, or 0.42 per cent, to 1,976.08 and the Nasdaq Composite was adding 13.42 points, or 0.3 per cent, to 4,489.05.
Advancing issues were outnumbering declining ones on the NYSE by 2,066 to 674, for a 3.07-to-1 ratio on the upside; on the Nasdaq, 1,356 issues were rising and 899 falling for a 1.51-to-1 ratio favoring advancers.
The benchmark S&P 500 index was posting 15 new 52-week highs and no new lows; the Nasdaq Composite was recording 16 new highs and 21 new lows.
Source : economictimes