Dow Rises 143 as Bulls Feast on Strong Data, M&A

Dow Recovers; M&A, Data Boost Stocks
Wall Street wasted little time recapturing almost all of Friday's losses as the Dow mounted its strongest rally since February on Monday on a flurry of bullish developments, including further evidence of the resiliency of American consumers and a big marriage in the airline industry.

Stocks kicked off May on a high note, as the Street cheered positive developments from across the pond, a round of merger-and-acquisition news, and a double dose of upbeat economic data. First, the bulls let out a collective sigh of relief after European countries agreed to a 110 billion euro ($146.5 billion) bailout package for beleaguered Greece.

Elsewhere, in what would form the world's largest airline, United Airlines parent UAL Corp. announced an all-stock deal to buy Continental Airlines, reinforcing hopes that corporate America is on the road to recovery. Meanwhile, the Institute for Supply Management said the manufacturing sector expanded at the fastest pace in six years in April, while the Commerce Department estimated that domestic consumer spending jumped to a record high in March. Against this backdrop, the major market indexes settled significantly north of breakeven, with the Dow Jones Industrial Average finishing its best session since February.

The Dow Jones Industrial Average (DJIA – 11,151.83) added 143.22 points, or 1.3%, as all but one of its 30 components ended higher. Industrial issues Boeing (BA) and Caterpillar led the charge thanks to the day's encouraging manufacturing data, while Alcoa bucked the bullish trend.

In light of today's triple-digit advance, the blue-chip barometer reclaimed double-barreled support at it 10-day and 20-day moving averages.

In similar fashion, the S&P 500 Index (SPX – 1,202.26) advanced 15.57 points, or 1.31%, finishing neck-and-neck with its 10-day trendline, but climbing back atop the round-number 1,200 level.

Meanwhile, the Nasdaq Composite (COMP – 2,498.74) gained 37.55 points, or 1.53%, but lost the battle with both its 10-day moving average and the 2,500 level.

Crude Stays Above $86

Crude futures finished a choppy session in the black today, as optimistic economic activity helped to offset a stronger U.S. dollar. In addition, commodities traders remained concerned about the effects of the devastating oil spill in the Gulf of Mexico, which could disrupt oil tanker traffic and production in the region. By the close, crude oil for June delivery added 4 cents, or 0.05%, to settle at $86.19 per barrel.

Golden Stairways To Safe Haven

Meanwhile, gold futures extended their recent run higher, finishing at their loftiest level of 2010 today. Despite the recently announced rescue package for Greece, some investors remained worried that the country's debt concerns could be contagious for fellow euro zone components. As such, the malleable metal remained a virtual magnet for safe-haven buying, with June-dated gold futures finishing $2.60, or 0.2%, ahead at $1,183.80 an ounce.

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