U.S. stocks closed the session higher on Monday, reports of merger activity overshadowed concerns over a trade rift with China. The U.S. is to impose tariffs of up to 35 per cent on tire imports from China, with China retaliating saying it will start imposing tariffs on U.S. cars and chicken.
The Dow Jones industrial average up 21 points to 9,627. The S&P500 Index gained 7 points to 1,049 and the NASDAQ added 11 points to 2,092.
In company news: Shares in manufacturer of pharmaceutical products Eli Lilly & Company (NYSE:LLY) rose 0.94 per cent to $33.13. The company says it plans to cut around 5,500 jobs in an effort to cut costs. The job cuts are just one part of the company’s plans to save $1 billion by 2011.
Shares in communication services company Sprint Nextel Corp (NYSE:S) rallied 10.08 per cent to $4.15. The company’s shares rallied in response to reports that Deutsche Telekom, owner of T-Mobile in the U.S, may be about to make its rival a takeover offer.
Shares in global power company AES Corp (NYSE:AES) gained 4.52 per cent to $14.79. The Wall St Journal reports that China’s sovereign wealth fund is in discussions to acquire a stake in AES.
And shares in women’s apparel retailer Coldwater Creek Inc (NASDAQ:CWTR) increased 0.96 per cent to $7.38. The company’s CEO has stepped down from the role and is to be replaced by Coldwater’s chairman.
Checking the NASDAQ Top 100: Wynn Resorts made the most gains on Monday adding 7.15 per cent to $69.11. Flir Systems and Joy Global also advanced. On the downside, First Solar fell 2.68 per cent to $133.09, while NII Holdings and Teva Pharmaceuticals also closed lower.
