Stocks rose in choppy trade on Monday as surging oil prices lifted shares of energy companies, while positive broker comments spurred a rebound in technology bellwethers such as Microsoft Corp (MSFT.O: Quote, Profile, Research, Stock Buzz) after a plunge on Friday.
Exxon Mobil (XOM.N: Quote, Profile, Research, Stock Buzz), up 2.7 percent at $65.76, was the top boost to the Dow, up, while a reassuring sales report boosted McDonald's Corp (MCD.N: Quote, Profile, Research, Stock Buzz) 2.4 percent to $53.37.
News of Merck's (MRK.N: Quote, Profile, Research, Stock Buzz) proposed $41 billion takeover of Schering-Plough (SGP.N: Quote, Profile, Research, Stock Buzz) offered another spur for investors looking for catalysts to lift the market off 12-year lows.
"Tech is certainly a sector that should benefit," said Peter Jankovskis, director of research at OakBrook Investments LLC in Lisle, Illinois.
"We're moving toward an environment where conserving energy and conserving materials is important, and to do that, invest in tech. That's what companies will be doing."
The Dow Jones industrial average .DJI rose 65.39 points, or 0.99 percent, to 6,692.33. The Standard & Poor's 500 Index .SPX was up 10.90 points, or 1.60 percent, to 694.28. The Nasdaq Composite Index .IXIC climbed 19.95 points, or 1.54 percent, to 1,313.80.
Microsoft stock climbed 2.2 percent to $15.62, making it one of the Nasdaq's top boosts after brokerage Collins Stewart recommended the software maker as a top large-cap pick.
Technology shares had sold off on Friday following bearish brokerage comment on Apple Inc's (AAPL.O: Quote, Profile, Research, Stock Buzz) prospects. Apple was up almost 1.6 percent at $86.63.
Exxon Mobil shares rose 2.3 percent to $65.48 as U.S. front-month crude jumped nearly 6 percent, or $2.63, to $48.15 a barrel.
Bank of America (BAC.N: Quote, Profile, Research, Stock Buzz) shot up more than 11 percent following a newspaper report that the bank can avoid the fate of beleaguered rival Citigroup (C.N: Quote, Profile, Research, Stock Buzz).
Schering-Plough shares rose 18.4 percent to $20.88, while Merck, a Dow component, declined 3 percent to $22.06.
