US stocks on Monday climbed for a third session — to chalk up a gain of more than seven percent during the longest winning run in weeks — as relative calmness reigned and investors embraced Google Inc.’s $12.5 billion play for Motorola Mobility Holdings Inc.
The Dow Jones Industrial Average gained 213.88 points, or 1.9 percent, to close at 11,482.90, with Bank of America Corp. shares leading gains on the blue-chip benchmark that included all of its 30 components.
On Friday the Dow industrials tallied its first two-day gain in a month, and the higher finish on Monday marked its longest streak of gains since a five-session run ending July 1. The index has seen a total gain of 7.1 percent over the last three trading sessions.
Bank of America shares rose 7.9 percent after the company said it would sell its credit card business in Canada to TD Bank Group and exit the card business in the United Kingdom and Ireland.
The S&P 500 Index also gained for a third session, marking its longest winning run since a five-session streak ending July 1. The index rose 25.68 points, or 2.2 percent, to end at 1,204.49, with utilities and energy faring best among its 10 industry groups. It is up 7.5 percent over the last three trading days.
The Nasdaq Composite Index climbed 47.22 points, or 1.9 percent, to close at 2,555.20. It has tallied a three-session gain of 7.3 percent.
For every stock falling, more than 10 gained on the New York Stock Exchange, where 1.1 billion shares had traded by the close of the session.
The day’s mergers and acquisitions action bolstered sentiment, as did a report from Japan that the nation’s economy had fared better than anticipated after the March earthquake, tsunami and nuclear crisis.
Google’s deal to buy Motorola Mobility , the phone hardware business spinoff, marked the search giant’s largest acquisition to date.
Time Warner Cable Inc. said it would acquire cable operator Insight Communications for $3 billion, and Transocean Ltd. said it would pay $1.4 billion for Aker Drilling to bolster its presence in Norway.
Stocks overcame economic reports showcasing continued stress on the economy. Manufacturers in the New York region expressed more pessimism about what is ahead, and confidence among US home builders stood unchanged at very low levels in August.
Stocks’ ability to extend their recent rebound may hinge on an upcoming batch of earnings.
On Tuesday, investors can expect results from retailers including Walmart Stores Inc. and Home Depot Inc.
Of the 460 companies that have reported quarterly earnings so far, 322, or 70 percent, beat estimates; 40, or nine percent, have matched; and 98, or 21 percent, have missed, according to a rundown by Standard & Poor’s and Capital IQ.