By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose sharply on Monday, as
deal news among drug and telecom companies and
stronger-than-expected pending-home sales figures boosted
sentiment.
The market wobbled temporarily in early trade after the White
House announced a new wave of sanctions against Russia, but quickly
recovered.
The S&P 500 (SPX) was 12 points, or 0.7%, higher at
1,874.74. The Dow Jones Industrial Average (DJI) gained 127 points,
or 0.8%, to 16,488.42. The Nasdaq Composite (RIXF) rose 31 points,
or 0.8%, to 4,107.07.
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action.
A gauge of pending-home sales rose 3.4% in March -- the first
gain in nine months -- signaling that sales of existing homes may
pick up, the National Association of Realtors reported Monday.
This week, investors will focus on earnings and economic reports
as well as the Federal Open Market Committee meeting. The Fed is
expected to announce further trimming of the bond-buying program by
$10 billion. GDP data, set for release Wednesday, will likely show
the economy expanded 1% in the first quarter. Nonfarm-payrolls data
are scheduled for release Friday and are forecast to show that more
than 200,000 jobs were added to the U.S. economy in April.
In corporate news, shares in Charter Communications Inc. (CCMMV)
rallied 7.7% on news that Comcast Corp. (CMCSA) plans to sell
nearly 4 million extra subscribers in a two-staged deal with
Charter Communications -- representing a consolation prize for
Charter's eight-month pursuit of Time Warner Cable Inc. (TWC).
Investors shrugged off Charter's first-quarter earnings, announcing
a net loss of 35 cents a share on revenue of $2.2 billion, while
analysts expected a profit of 10 cents on revenue of $2.18
billion.
Shares in Comcast and Time Warner rose by 1%.
U.S.-listed shares of AstraZeneca PLC (AZN) leapt 15% after
Pfizer Inc. (PFE) confirmed it has approached the drug maker for a
second time about a takeover valued at nearly $100 billion. Pfizer
said in a statement that the merger would result in a more
efficient tax structure as AstraZeneca's non-U.S. profits wouldn't
be subject to U.S. tax. Pfizer shares were up 2.9%, leading the Dow
industrials.
Franklin Resources Inc. (BEN) reported second-quarter earnings
of 89 cents a share, in line with expectations. Shares fell
0.9%.
After the closing bell, Herbalife (HLF) is expected to report
first-quarter earnings of $1.30 a share on revenue of $1.24
billion.
Furiex Pharmaceuticals Inc. (FURX) surged 28% after Forest
Laboratories Inc. (FRX) said it would buy the company for $1.1
billion in cash.
In other financial markets, Asian bourses closed mostly lower,
while European stocks posted broad-based gains. Metals were mixed
(GCM4), and oil futures (CLM4) advanced. The dollar weakened
against most other major currencies.
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