NEW YORK (AP) - The U.S. stock market closed Monday up, but a kick at the end of the day prevented to set a new high water mark.
The market most of the day, driven by optimism about the economy and mergers continued to rise, to lose momentum in the last half hour of trading.
The Dow Jones industrial average rose 103.84 points (0.6%) to 16,207.14, while the Nasdaq composite index rose 29.56 whole (0.7%) to close at 4292.97.
Meanwhile, the Standard & Poor’s 500 index rose 11.36 points (0.6%) to close at 1847.61, slightly below its record close of 1848.38 on 15 January. That helped boost the index to set a new record of 1858.76 before closing.
Investors had little economic or corporate earnings to digest information, so many of Monday’s session focused on another round of mergers.
Shares of chip maker RF Micro Devices raised $ 1.22 (21%) to 7.03 after announcing the acquisition of its competitor TriQuint Semiconductor in a stock transaction valued at 1,560 million dollars. Shares of TriQuint $ 2.41 (26%) soared to 11.64.
Meanwhile, shares of the retail chain Jos menswear. A. Bank rose $ 4.99 (9%) to 60.04 after its competitor Men’s Wearhouse increased its bid. The Men’s Wearhouse shares raised $ 3.40 (8%) to $ 48.51.
U.S. stock market watchers say that buying competitors by other companies should be considered a positive sign for stocks.
“It shows that companies still see value in the market, even with these high closures,” said Quincy Krosby, market strategist at Prudential Financial.
In the last two and a half weeks, the stock market has virtually erased the losses after the difficult start to the year.
Moreover, the chairman of the Fed, Janet Yellen, will appear Thursday before the Senate Banking Committee. And economic reports this week include orders for durable goods and GDP for the fourth quarter of 2013 in the United States.
The government debt bonds were unchanged on Monday. The yield on the benchmark 10-year Treasury stood at 2.74%, the same Friday.