Stocks rise for third straight session
The Dow Jones industrial average ended the day up 213.88 points or 1.9%, at 11,482.90. That is 38 points higher than where the blue-chip average closed Aug. 5, just hours before Standard & Poor’s announced its move. The average is still down 10.4% from the highs reached in April.
The broader Standard & Poor’s 500 index was up Monday 25.68 points, or 2.2%, to 1,204.49.
Investors were encouraged by a number of big deals that were announced over the weekend, including Google Inc.’s purchase of Motorola Mobility Inc. and Time Warner Cable Inc.’s bid to buy Insight Communications.
Some investors also said they were buying stocks that looked cheap after the panicked selling that took place over the last three weeks.
The optimism was enough to overshadow a disappointing report from the Federal Reserve Bank of New York, which showed a decline in manufacturing in the New York region in August.
-- Nathaniel Popper