U.S. stocks climbed on Monday, with the S&P 500 bouncing back from its largest weekly hit in three months, as investors welcomed better-than-projected earnings from Citigroup and a rise in corporate takeovers.
URS surged after Aecom Technology said it would pay about $4 billion to purchase the construction-management company. AbbVie declined after Shire said it was ready to recommend the company’s latest offer to its shareholders. Apple rose after Barclays upgraded shares of the iPhone maker to overweight from equal weight.
Citigroup gained after reporting quarterly results and after agreeing to pay $7 billion to settle government claims it misled investors about mortgage-backed bonds sold ahead of the 2008 financial crisis.
The S&P 500 added 9.50 points, or 0.5 percent, to 1,977.07, with financials leading gains and telecommunications the poorest performing of its 10 major industry groups.
The Nasdaq gained 23.77 points, or 0.5 percent, to 4,439.26.
For every share falling, roughly four rose on the New York Stock Exchange, where 47 million shares traded in the first five minutes of trading. Composite volume surpassed 124 million.
The dollar edged higher against the currencies of major U.S. trading partners and the 10-year Treasury yield used in figuring mortgage rates and other consumer loans rose 2 basis points to 2.537 percent.
On the New York Mercantile Exchange, gold futures for August delivery dropped $31.00, or 2.3 percent, to 1,306.40 an ounce; crude-oil futures for August delivery rose 9 cents, or 0.1 percent, to $100.76 a barrel.
On Friday, stocks ended with gains for the session and losses for the week as investors weighed quarterly results from Wells Fargo and readied for earnings in the week ahead.