Stocks Ended Sharply Higher on Vaccine Hope, Merger News

U.S. stocks ended sharply higher on Monday, amid fresh hope for a coronavirus vaccine and a flurry of newly announced mergers and acquisitions among major companies. The Dow Jones Industrial Average rose 327.69 points, or 1.18%, to 27,993.33. The S&P 500 gained 42.57 points, or 1.27%, to 3,383.54. The Nasdaq Composite advanced 203.11 points, or 1.87%, to 11,056.65.

Oil futures ended lower on Monday, undercut by continued demand worries, as the Organization of the Petroleum Exporting Countries further reduced its outlook for demand growth, as well as the potential for more oil from Libya. West Texas Intermediate crude for October delivery fell 9 cents, or 0.2%, to end at $37.24 a barrel, while November Brent declined by 22 cents, or nearly 0.6%, at $39.61 a barrel.

AstraZeneca (AZN) announced over the weekend that its late-stage Covid-19 vaccine trials with the University of Oxford had resumed, after safety concerns over a suspected adverse reaction from a participant had led the company to pause trials temporarily a week earlier.

Oracle (ORCL) has allegedly won the bid for TikTok US over Microsoft (MSFT). According to an initial report by The Wall Street Journal and later Reuters, both citing unnamed sources, the social media video platform is hoping to seal a partnership, rather than an outright sale, in order to keep some control over its US operations.

Alphabet Inc’s (GOOGL) Google aims to power its data centers and offices 24-7 using solely carbon-free electricity by 2030, its chief executive told Reuters, building on its previous goal of matching its energy use with 100% renewable energy.

Verizon Communications (VZ) announced Monday it has acquired pre-paid wireless leader Tracfone. The cost of the transaction will include $3.125 billion in cash and $3.125 billion in Verizon common stock, subject to customary adjustments, at closing.