U.S. stocks shoot higher
U.S. stocks moved solidly higher on Monday, moving past any concerns that the terrorist attacks in Paris could spell trouble for the global economy. European markets shook off an early loss and ended mixed.
Wall Street's rally was led by energy companies, which rose much more than the rest of the market as the price of oil increased 3 percent to $41 a barrel. Chevron (CVX) jumped 4 percent.
The Dow Jones industrial average gained 237 points, or 1.4 percent, to close at 17,482 Monday. The Standard & Poor's 500 index increased 30 points, or 1.5 percent, ending at 2,053. The Nasdaq composite climbed 56 points, or 1.2 percent, to finish at 4,984.
The U.S. stock market is coming off its biggest weekly loss since August.
Some investors may be betting that Friday's attacks in Paris, which killed 129 people, won't have a meaningful long-term impact on the global economy.
"It all comes down to: Are consumers going to be staying at home and not out spending money because they're afraid that if they go anywhere they're going to be victims of a terrorist attack," said Scott Wren, senior global equity strategist for Wells Fargo Investment Institute. "That might be the case if you saw a series of these things, but hopefully that's not what's going to happen, and the economy is not going to be affected. The small upside we're seeing in the S&P 500 is reflective of that."
In Monday trading, defense contractors rose and travel and airlines companies fell as part of the reaction to the Paris terrorist attacks. Raytheon (RTN) and Northrup Grumman (NOC) each rose 4 percent while Delta Air Lines (DAL) declined 2 percent.
The attacks may make it even more likely that the European Central Bank will expand its stimulus program at the conclusion of its December meeting, some analysts said. The attacks also drove speculation that the Federal Reserve could hold off on raising rates next month.
"At this juncture, it is easy to see that the Fed's intentions to 'normalize' monetary policy could be derailed by a combination of adverse domestic economic and external events," said Neil MacKinnon, global macro strategist at VTB Capital.
Benchmark U.S. crude oil climbed $1.33, or 3.3 percent, to $42.10 a barrel in New York. Brent crude, used to price international oils, rose 46 cents, or 1 percent, to $44.92 a barrel in London.
Marriott International announced it is buying rival hotel chain Starwood for $12.2 billion in cash and stock. If completed, the deal would make Marriott the world's largest hotelier by a wide margin. Shares in Marriott (MAR) rose 98 cents, or 1.4 percent, to $73.72. Starwood (HOT) slid $2.72, or 3.6 percent, to $72.27.
In Europe, Germany's DAX was flat, while France's CAC 40 slipped 0.1 percent. Britain's FTSE 100 rose 0.5 percent. In Asia, Japan's Nikkei 225 fell nearly 1 percent, while Australia's S&P/ASX 200 lost nearly 1 percent. Hong Kong's Hang Seng fell 1.7 percent.
U.S. government bond prices rose. The yield on the 10-year Treasury note fell to 2.26 percent from 2.28 percent late Friday. The dollar rose to 123.23 yen from 122.72 yen and the euro fell to $1.0690 from $1.0740.
Precious and industrial metals prices closed mixed. Gold rose $2.70 to $1,083.60 an ounce, silver fell two cents to $14.22 an ounce and copper gave up five cents to close at $2.12 a pound.