Major stock indexes rose to their highest levels in more than a month Monday after corporate buyouts raised hopes about the economy.
The Dow Jones industrial average rose 79 points. The Standard & Poor's 500 index, the basis of many mutual funds, erased its losses for the year. The Nasdaq composite index also turned positive for 2010 after a Japanese drugmaker said it was pursuing OSI Pharmaceuticals Inc., of Melville, and SanDisk Corp. raised its revenue forecast.
The biggest boost for the market came from insurer American International Group Inc., which agreed to sell its prized Asian life insurance business to Britain's Prudential Plc for $35.5 billion. It's seen as a sign of confidence in the economy when big businesses go ahead with takeovers.
Stocks also rose on hope that European nations will announce a bailout deal to help Greece with its mounting debt problems. Stocks around the world have been hurt in recent months because of concerns debt problems in Greece would spread to other countries and undermine Europe's shared currency, the euro.
The Dow rose 78.53 points, or 0.8 percent, to 10,403.79, its highest close since Jan. 20. The S&P 500 index rose 11.22, or 1 percent, to 1,115.71. It is now up 0.1 percent for 2010. The Nasdaq rose 35.31, or 1.6 percent, to 2,273.57. It's up 0.2 percent for the year. Bond prices mostly rose, pushing down yields. The yield on the benchmark 10-year Treasury note fell to 3.61 percent from 3.62 percent late Friday. - AP