Stocks posted strong gains on Monday, Feb. 12, as equities rebounded from their worst week in two years.
The Dow Jones Industrial Average rose 410 points, or 1.7%. The S&P 500 gained 1.39% on Monday and the Nasdaq jumped 1.56%, following the session on Friday, Feb. 9, that saw wild market swings driven by worries related to faster inflation and a rise in interest rates.
The Dow Jones Industrial Average finished with a gain of 330 points, or 1.38%, on Friday but at one point during the session the blue-chip Dow fell as much as 500 points. The S&P 500 gained 1.49% on Friday and the Nasdaq was rose 1.44%. For the week ended Friday, the Dow declined by 5.21%, the S&P 500 dropped by 5.16% and the Nasdaq dropped 5.06%.
The energy sector was one of the best-performing sectors on Monday as U.S. oil prices regained the $60 a barrel level. Exxon Mobil Corp. (XOM) gained 0.74%.
Apple Inc. (AAPL) , American Express Co. (AXP) and Boeing Co. (BA) were leading gainers on the blue-chip Dow, rising 3.9%, 3% and 3%, respectively. Cisco Systems Inc. (CSCO) rose 2.5% after Nomura Instinet raised its rating on the stock to buy from neutral.
The yield on the 10-year Treasury note rose Monday to 2.866%. Earlier in the session it surged to as high as 2.902%, a new four-year record.
Rising bond yields come amid growing and sustained concerns over inflation. Investors are eagerly awaiting consumer pricing data expected Wednesday, Feb. 14, but remain cautious that inflation could increase faster than expected. FactSet analysts are looking for a 0.2% uptick in the Consumer Price Index, down slightly from last month's 0.3% increase.
Wall Street also focused at least some its attention on the release of President Donald Trump's $1.5 trillion plan to repair and rebuild the nation's infrastructure.
CSRA Inc. (CSRA) jumped 31% on Monday after General Dynamics Corp. (GD) agreed to acquire the government IT company for $40.75 a share, or about $6.68 billion.
Broadcom Ltd. (AVGO) has secured as much as $100 billion of debt financing for its hostile bid for Qualcomm Inc. (QCOM) and has enlisted two more big private-equity firms, The Wall Street Journal reported.
Last week, the board of chipmaker Qualcomm rejected Broadcom's higher unsolicited offer of $82 a share.
Qualcomm rose 2.5%. Broadcom gained 3.6%.
Comcast Corp. (CMCSA) is contemplating reviving its pursuit of Twenty-First Century Fox Inc. (FOXA) after its bid for the company's entertainment assets was turned down despite being more than 15% higher than that of eventual buyer Walt Disney Co. (DIS) , the Journal reported, citing people familiar with the situation.
Fox shares rose 1.8%.
Ford Motor Co. (F) shares were up 1.57% after the carmaker said it plans to ramp up production of the Expedition and Lincoln Navigator, the automaker's full-size SUVs.
Biotech giant Amgen Inc. (AMGN) has said it is "looking hard" for deals to deploy its $27 billion cash pile but warned it's struggling to find targets amid soaring valuations in the life sciences sector, the Financial Times reported. Amgen shares gained 0.8% on Monday.
Shares of clinical-stage biotech firm Axovant Sciences Ltd. (AXON) plunged 19% on Monday after it announced that its CEO, as well as its president and chief operating officer, had both resigned from the company.
According to a press release, former CEO David Hung, who had been in the job for just 10 months, was leaving to pursue other opportunities, as was president and Chief Operating Officer Marion McCourt.
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