U.S. Stocks Open Higher After B. Of A. Exceeds Estimates

NEW YORK (MarketWatch) -- U.S. stocks on Monday started higher after Bank of America Corp.'s earnings topped forecasts, giving a lift to financial shares, and Roche Holding AG offered $43.7 billion for the piece of Genentech Inc. that it doesn't already own.

"U.S. equities are trading positively again following B. of A. earnings results, which came in above low expectations. News that Swiss firm Roche made a $44 billion offer for a 45% stake in U.S. biotech firm Genentech also buoyed investor sentiment," according to analysts at Action Economics.

The Dow Jones Industrial Average gained 56.42 points to 11,552.99, with 21 of its 30 components striking early gains.

The S&P 500 Index climbed 5.44 points to 1,266.12, while the Nasdaq Composite Index rose 11.76 points to 2,294.54.

U.S. stocks ended mixed Friday but up on the week, due in part to better results than predicted from banks including Wells Fargo & Co. , J.P. Morgan Chase & Co. and Citigroup Inc.

Shares of retail banking giant Bank of America rose 10.3% after it reported a 41% profit decline for the second quarter, but still exceeded Wall Street's estimates. .

On the M&A front, Swiss drug giant Roche on Monday offered to buy the 44% of U.S. partner Genentech it doesn't already hold. .

Yahoo Inc. slid 3.1% after it agreed to let dissident shareholder Carl Icahn on its board. Two other seats would chosen from a list of nine candidates recommended by Icahn. .

On the New York Mercantile Exchange, crude for September delivery climbed 81 cents to $129.65 a barrel. .

By Kate Gibson