MW: U.S. stocks: Dow tops 17,000 again as Citi rallies
Deal news send Mylan higher
By Anora Mahmudova and Carla Mozee, MarketWatch
NEW YORK (MarketWatch) — The U.S. stock market gained, pushing the Dow Jones Industrial Average above 17,000 on Monday as investors welcomed better-than-expected earnings from Citigroup Inc. and a flurry of mergers and acquisitions.
The banking heavyweight’s profit topped estimates, even as it reached a $7 billion settlement with the U.S. Justice Department over shoddy mortgage-backed securities. Shares jumped 4%.
The S&P 500 SPX +0.55% opened 10 points, or 0.5%, higher at 1,977.50. The Dow Jones Industrial Average DJIA +0.75% added 100 points, or 0.6%, to 17,041.38.
The Nasdaq Composite COMP +0.54% began the session 25 points, or 0.6%, higher at 4,440.55.
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The pace of the second-quarter earnings season will move into high gear this week with results due from large companies in the financial and technology sectors, the two largest sectors in the S&P 500 index.
The banking sector and “valuations are going to remain the main focus for this week, as we will get the earnings from some of the biggest tycoons of Wall Street,” said Naeem Aslam, chief market analyst at AvaTrade, in a note. “The expectations are high, and investors are hoping that these earnings will cement the optimism that growth is on track in the U.S. and the revenues are healthy.”
There are no Federal Reserve speakers or data reports on the calendar Monday, though Fed Chairwoman Janet Yellen will field questions from Congress on Tuesday and Wednesday. This week will see the retail sales report for June on Tuesday, which could offer clues about whether consumers are starting to feel more optimistic. Also on the docket this week are reports on new home construction, manufacturing and consumer sentiment.
Outside of corporate earnings, shares of drug maker AbbVie Inc. ABBV -0.64% may be active after Shire PLC UK:SHP +1.79% SHPG +2.05% said Monday it has received a new takeover offer from AbbVie, and that it’s willing to recommend the deal, now valued at more than $53 billion, to its shareholders.
Mylan Inc. shares MYL +2.09% tacked on 3% premarket following news of the drug company’s plan to buy a portion of Abbott Laboratories ABT +0.65% generics business in a deal valued at $5.3 billion.
Aecom Technology Corp. ACM +3.75% said Sunday it is buying engineering and construction company URS Corp. URS +9.04% for $4 billion in cash and stock, and will assume $2 billion in debt, bringing the deal’s total cost to $6 billion.
Whiting Petroleum Corp. WLL +6.43% on Sunday said it plans to buy Kodiak Oil & Gas Corp. KOG +5.27% in a deal worth $3.8 billion.
In the commodities market, futures for August crude oil CLQ4 +0.06% fell 13 cents to $100.70 a barrel and gold futures GCQ4 -2.24% fell $23 to $1,314 an ounce.
Asian stocks overnight finished broadly higher, with Tokyo’s Nikkei Average JP:NIK +0.88% ending up by 0.9%. European stocks XX:SXXP +0.83% rose as fears about the soundness of Portuguese banks receded.
