By Anora Mahmudova and Victor Reklaitis, MarketWatch

Deal news for AT&T-Time Warner, B/E-Rockwell Collins, Ameritrade and more

U.S. stocks advanced in early trade Monday, getting a lift from merger announcements, including AT&T's planned acquisition of Time Warner.

The S&P 500 gained 12 points, or 0.6%, to 2,153, with nearly all 11 main sectors trading higher. The Dow Jones Industrial Average advanced 114 points, or 0.6%, to 18,260.

The Nasdaq Composite Index tacked on 45 points, or 0.9%, to 5,303.

"Companies spending their cash on mergers and acquisition is good news for Wall Street. There is also a feeling that the election outcome is mostly certain with Hillary Clinton becoming the next president," said Steve Chiavarone, associate portfolio manager at Federated Global Allocation Fund.

"Investors always pay higher prices for things they know even if they don't like it and pay lower prices for things they don't know," Chiavarone said.

Other analysts noted that technical analysis points to further weakness.

"Despite strong earnings reports, U.S. indices increasingly look like they are coming under distribution, particularly the S&P 500 500, which appears to be completing a head and shoulders top," said Colin Cieszynski, chief market strategist at CMC Markets, in a note. A head and shoulders pattern (http://www.investopedia.com/terms/h/head-shoulders.asp) is a bearish chart formation.

"Part of the headwinds for stocks may be coming from continued gains by the [U.S. dollar], although the dollar index is starting to look exhausted," Cieszynski said.

See: How the almighty dollar will tell you where stocks are going next (http://www.marketwatch.com/story/how-the-almighty-dollar-will-to-you-where-stocks-are-going-next-2016-10-21)

Shares in HBO and CNN parent Time Warner Inc.(TWX) dropped 2.8% following news over the weekend that AT&T Inc.(T) had reached a deal (http://www.marketwatch.com/story/att-reaches-deal-to-buy-time-warner-for-80-billionplus-wall-street-journal-2016-10-22-14103223) to buy the media company for $85 billion. AT&T shares fell 1.1%. The huge buyout looks set to face opposition no matter who wins the U.S. presidential election, with Donald Trump and Hillary Clinton both expressing skepticism (http://www.marketwatch.com/story/both-clinton-trump-wary-of-att-time-warner-merger-2016-10-23).

T-Mobile US Inc.(TMUS) shares rallied 3% after beating earnings estimates.

Shares in B/E Aerospace Inc.(BEAV) jumped 15% after Rockwell Collins Inc.(COL) on Sunday announced a $6.4 billion deal (http://www.marketwatch.com/story/rockwell-collins-in-64-billion-deal-to-buy-be-aerospace-2016-10-23) to unite the two aerospace suppliers. Rockwell Collins was down 4.3%.

Brokerage TD Ameritrade Holding Corp.(AMTD) and Toronto-Dominion Bank(TD.T)(TD.T) confirmed they have agreed to buy (http://www.marketwatch.com/story/td-ameritrade-td-bank-announce-4-billion-scottrade-takeover-2016-10-24) privately owned brokerage Scottrade Financial Services for $4 billion. TD Ameritrade's stock was off by 0.7%.

Insurer Genworth Financial Inc.(GNW) has agreed to sell itself for $2.7 billion () to a Chinese investment firm, China Oceanwide Holdings Group Co. (0715.HK). Genworth was down 9%.

Shares of Basic Energy Services Inc. (BAS) plummeted 51% after the operator of oil and gas wells announced an agreement with debtholders as it prepares to file for bankruptcy.

Aduro Biotech Inc.(ADRO) plummeted as much as 22% after the company said a patient tested positive for listeria, prompting the Food and Drug Administration to place its clinical trials on partial clinical hold.

In earnings news, Kimberly-Clark Corp. (KMB) dropped 2.7 after its quarterly profit missed forecasts, and VF Corp. dropped after cutting its guidance (http://www.marketwatch.com/story/vf-corp-shares-fall-after-guidance-slashed-2016-10-24). T-Mobile was higher after posting better-than-expected profit (http://www.marketwatch.com/story/t-mobile-shares-rise-5-after-company-posts-better-than-expected-q3-profit-2016-10-24).

Read more: Stock market this week looks to Apple, Google earnings for jolt (http://www.marketwatch.com/story/stock-market-looks-to-apple-google-earnings-for-jolt-2016-10-22)

Other markets: Oil futures traded lower following choppy action as Iraq indicated it won't cut production (http://www.marketwatch.com/story/oil-prices-fall-after-iraq-says-it-wont-scale-back-output-2016-10-24). European stocks traded higher (http://www.marketwatch.com/story/european-stocks-advance-with-spanish-shares-energized-by-political-deal-2016-10-24), while Asian markets closed mostly with gains. Gold futures and a key dollar index were slightly down.

Economic news: Markit's purchasing managers' manufacturing index climbed to 53.2 in October.

On the Fed front, New York Fed President William Dudley is expected to give opening remarks at 9 a.m. Eastern at a conference in New York on the Treasury market's evolving structure. Fed Gov. Jerome Powell is scheduled to moderate a panel discussion at the same conference at 1:45 p.m. Eastern.

St. Louis Fed President James Bullard is due to give a presentation at 9:05 a.m. Eastern in Fayetteville, Ark., to the Association for University Business and Economic Research, while Chicago Fed President Charles Evans is expected to give a speech and take part in a Q&A in the Windy City at 1:30 p.m. Eastern.

(END) Dow Jones Newswires

October 24, 2016 10:13 ET (14:13 GMT)

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