Stocks are pushing higher for a third consecutive session as Wall Street gets a lift from major merger deals. Google (GOOG) announced that it plans to buy Motorola Mobility Holdings (MMI) for $12.5 billion. The deal, if it goes through, is expected to give Google a significant advantage in developing its Android operating system, particularly patent protection and a hardware platform. Investors were growing concerned that the web search giant was losing ground to rivals like Apple (AAPL), Microsoft (MSFT) and others after the iPhone-maker led a group to purchase $4.5 billion worth of Nortel Network patents. But merger Monday did not stop there as Time Warner Cable (TWC) also announced that it would buy Insight Communications for $3 billion, and Transocean (RIG) said it would acquire Aker Drilling for $1.4 billion. News of the deals helped to overshadow reports of growing bearish economic sentiments in the market and uncertainty of the financial situation in Europe. Oil prices are also pushing higher, trading above $87 a barrel as fear of stagnant economic activity eases. Gold prices have also regained some ground it lost with a steep drop last week.
Major U.S. Stock Indices
DJIA: 11,406.69 (+1.22 percent)
S&P 500: 1,195.06 (+1.38 percent)
NASDAQ: 2,529.81 (+0.86 percent)
Russell 2000: 711.10 (+1.95 percent)
In other news:
- Warren Buffett says Congress should should “stop coddling the super rich” and make them pay taxes. [NY Times]
- Stocks were falling pretty drastically last week, and the recent uptrend may cause investors to rush into a “value trap” as they try to get in before it’s too late. [WSJ]
- Corporate America is slashing more and more jobs, forcing more Americans to become entrepreneurs. [CNBC]
- Forty years ago today, the U.S. moved off of the gold standard. How’s that been working out so far? [Marketwatch]
- The Royal Dutch Shell (RDS.A) oil spill in the North Sea is considered significant, but is not nearly as bad as the BP (BP) still of last year. [Guardian]
Check back for more news.