4:10 PM New York – Indexes rallied on the first day of this week after $15 billion of deals and the markets in Europe were also calm ahead of the meeting between the leaders of France and Germany. Google with the purchase of Motorola Mobility looks to repeat the Apple’s success. Gold added 1.4% and crude oil jumped 3%.
The U.S. indexes gained after three deals totaling $16 billion were announced. The S&P 500 index added 1.9% and the Nasadaq index rose 1.6%.
Google agreed to acquire Motorola Mobility in $12.5 billion deal. Time Warner Cable agreed to buy Insight for $3 billion. National Oilwell Varco signed $1.5 billion deal with Brazil-based Estaleiro Atlantico Sul.
Bank of America agreed to sell its credit card business to TD Bank for $8.6 billion. Google agreed to acquire Motorola Mobility at 64% premium for $12.5 billion. Lowe''s second quarter net earnings declined 0.2% to $830 million. Time Warner will acquire Insight Communications for $3 billion in cash.
European indexes edged higher after a tumultuous last week on optimism of global economic recovery. The Italian cabinet approved €45 billion austerity plan. Transocean agreed to acquire Norway-based Aker Drilling for $1.43 billion.
German factory employment climbed but Swedish industrial output fell in June. Denmark factory prices rose, Czech producer price inflation eased, and Swiss producer and import price index declined in July.
The UK indexes gained nearly 1% on the first day of trading after a week of wild swings. Home prices in the UK fell for the second month in a row in August. Spectris agreed to acquire U.S.-based Omega Engineering for £290 million.
Stocks in Japan surged the most in six weeks after the government said the economy shrank at a slower pace than expected in the latest quarter. Exporters and auto makers gained after finance ministry indicated more steps to weaken the yen.
Commodities, Bonds and Currencies
The 10-year U.S. bond yield increased to 2.26% and 30-year U.S. bond traded up at 3.74%.
The U.S. dollar decreased at $1.4452 to one euro and closed flat against the Japanese yen to 76.78 yen.
Immediate delivery futures of Texas crude oil increased $2.60 to $87.99 a barrel and futures of natural gas decreased 0.03 cents to $4.03 per mbtu and gasoline price increased 4.60 cents to 286.84 cents a gallon.
In metals trading, copper increased 2.15 cents to $4.055 per pound, gold increased $23.70 to $1,766.30 per ounce and silver increased $0.53 to $39.65.