Stocks Rose for Third Day on Deal News

Stocks closed higher for the third straight day on Monday after a $12.5 billion merger offer from Google Inc. helped lure investors back into a market. The Dow Jones Industrial Average gained 213.88 points, or 1.90%, to 11,482.9. The S&P 500 gained 25.68 points, or 2.18%, to 1,204.49. The Nasdaq Composite added 47.22 points, or 1.88%, to 2,555.20.

Google Inc. agreed to acquire Motorola Mobility Holdings Inc. for about $12.5 billion, a move that would make Google more competitive in the mobile-computing market.  It’s by far Google’s biggest acquisition and a sign the online search leader is serious about expanding beyond its core Internet business and setting the agenda in the fast-growing mobile market.

Consumer borrowing fell slightly in the second quarter, as Americans shed more of their debt. A new report released Monday by the New York Federal Reserve found that total consumer debt fell to $11.4 trillion in the second quarter of this year.

Foreign investors cut their holdings of U.S. Treasury debt in June for the first time in more than two years. The decline came at a time of anxiety about whether the United States would raise its borrowing limit.China, the biggest buyer of U.S. Treasury debt, increased its investment for a third straight month. But Japan, the second-largest buyer, along with Brazil, Russia, Hong Kong, and a group that includes the Bahamas, Bermuda, the Netherlands and the Cayman Islands cut their investments.

Crude-oil futures climbed 2.9% Monday to close at their highest level in almost two weeks, buoyed by strength in U.S. stocks and a weaker dollar after declines of around 8% in the month to date. Crude for September delivery rose $2.50 to settle at $87.88 a barrel on the New York Mercantile Exchange after briefly touching a high above $88.

About the Author

has written 15937 stories on this site.

Write a Comment

Gravatars are small images that can show your personality. You can get your gravatar for free today!

You must be logged in to post a comment.

Copyright © 2012 Nine Stocks