AT&T, Schwab deals take stocks higher

Stocks started the week with big gains yesterday on a major telecommunications deal and signs that Japan's nuclear crisis was stabilizing. The Dow Jones industrial average closed above 12,000 for the first time since a nuclear power plant in Japan failed following a massive earthquake and tsunami.

In the U.S., AT&T Inc. said it would buy rival T-Mobile USA Inc. for $39 billion, creating the largest U.S. cell-phone company. Charles Schwab Corp. said it would buy online brokerage services provider OptionsXpress for $1 billion. The deals raised hopes that more corporate buyouts could be on the way as businesses become more confident in the recovery.

"You only expand when you have a good feeling about the future," said Peter Cardillo, chief market economist at New York-based brokerage house Avalon Partners.

The Dow Jones industrial average rose 178.01 points, or 1.5 percent, to 12,036.53.

The Standard & Poor's 500 index gained 19.18, or 1.5 percent, to 1,298.38. The Nasdaq composite rose 48.42, or 1.8 percent, to 2,692.09.

Energy stocks led the market higher after oil prices climbed back above $103 per barrel. Schlumberger Ltd., which helps companies drill for oil and gas, rose 4.4 percent to $89.73. ConocoPhillips rose 2.9 percent to $77.55.

Worries about Japan's stricken nuclear reactors eased after the Nuclear Regulatory Commission said the situation at the Fukushima Dai-ichi plant appeared to be stabilizing.