Stocks Jumped, Boosted by Merger Activity

U.S. stocks jumped on Monday, as optimism over merger activity helped Wall Street erase this year’s early weakness. The Dow Jones Industrial Average gained 103.84 points, or 0.64%, to end at 16,207.14. The S&P 500 rose 11.36 points, or 0.62%, to finish at 1,847.61. The Nasdaq added 29.56 points, or 0.69%, to close at 4,292.97.

Among merger and acquisition news, RF Micro Devices Inc agreed to buy TriQuint Semiconductor Inc for about $1.6 billion, while Men’s Wearhouse Inc raised its cash tender offer for rival men’s clothing retailer Jos. A. Bank Clothiers Inc to $63.50 per share from $57.50.

The Pentagon said on Monday it would shrink the U.S. Army to pre-World War Two levels, eliminate the popular A-10 aircraft and reduce military benefits in order to meet 2015 spending caps, setting up an election-year fight with the Congress over national defense priorities.

Facebook (FB) founder Mark Zuckerberg said the social network would take a pause from major acquisitions after spending $16 billion to buy messaging service WhatsApp.