New York – Lower oil prices and technology news helped stocks rally Monday despite a legal dispute that raised questions about Johnson & Johnson’s $25 billion acquisition of Guidant Corp.
Investors had little information to guide them through the session, with few third- quarter earnings reports remaining and no major economic data scheduled this week. News that Microsoft Corp. is in talks to buy a stake in America Online Inc. and a deal involving TiVo Inc. and Yahoo Inc. drove gains in the tech sector.
The market found some comfort in the declining price of crude oil, which sank more than $1 a barrel as recent unusually warm weather quelled fears of a winter heating- oil shortage, although the International Energy Agency reiterated concerns about capacity.
A barrel of light crude lost $1.11 to settle at $59.47 on the New York Mercantile Exchange.
Bill Groenveld, head trader for vFinance Investments, said he found it surprising that the market hasn’t withdrawn, given the shortage of headlines, which he called evidence that a bullish sentiment remains on Wall Street.
“Over the last six months, the market has been through trials and tribulations,” Groenveld said. “But it’s really coming through with flying colors, considering everything it’s been up against.”
At the close of trading, the Dow Jones industrial average gained 55.47, 0.53 percent, to 10,586.23, its highest close since Sept. 16.
Broader stock indicators were also higher. The Standard & Poor’s 500 index was up 2.67, 0.22 percent, at 1,222.81, and the Nasdaq composite index advanced 8.81, 0.41 percent, to 2,178.24.
The Bloomberg Colorado Index, a price- weighted list of companies based in the state, rose 1.66 to 309.47.
Bonds rose after reaching eight-month lows last week, with the yield on the 10-year Treasury note sliding to 4.63 percent from 4.67 percent late Friday. The dollar gained ground against most major currencies, while gold prices inched upward.
Last week, the major indexes each added more than 1 percent.
