Stocks muscled higher at the open Monday as rising overseas markets and mergers buoyed early trade.
Dow industrials and the Nasdaq climbed 0.7%. The S&P 500 added 0.6%.
A heavy slate of earnings reports are due out on the stock market today, and the week opens with a strong dose of input from Federal Reserve officials. William Dudley, president of the New York Federal Reserve, launched into early comments at 9 a.m. ET. St. Louis Federal Reserve President James Bullard, speaking in Fayetteville, Ark. this morning, said low Fed target rates would remain the norm for two or three more years. Chicago Federal Reserve President Charles Evans is up next with a 1:30 p.m. ET speech. Finally, Jerome Powell, a governor of the Federal Reserve, speaks at 1:45 p.m. ET.
London-based researcher Markit releases its preliminary reading for its October manufacturing purchasing managers index at 9:45 a.m. ET.
Early Movers: AT&T, B/E Aerospace, Stanley
AT&T (T) announced Saturday night it had reached a deal to purchase Time Warner (TWX) for $85.4 billion. The two companies said they aimed to offer a traditional cable TV bundle online -- a move intended to "disrupt the traditional entertainment model and push the boundaries on mobile content." Shares of AT&T traded down 2% after tje start of trading. Time Warner shares slipped nearly 3%.
B/E Aerospace (BEAV) jetted up 16% after Rockwell Collins (COL) said it would acquire the maker of aircraft interiors for $6.4 billion, plus $1.9 billion in assumed debt. Analysts quoted by Reuters suggested the move was an indicator that the market for aircraft orders had peaked. Rockwell shares dipped 4% early Monday.
TD Ameritrade (TD) shares inched up slightly on news that the company agreed to buy privately held Scottrade Financial Services in a deal valued at $4 billion.
In earnings news, T-Mobile U.S. (TMUS) rang up a 7% gain after reporting a mixed third-quarter performance. Earnings beat expectations as revenue missed, but management raised its full-year guidance for earnings and for new subscribers. The stock has been trading in a shallow consolidation below an early August high.
Kimberly Clark (KMB) slipped 2% after reporting weaker-than-targeted third-quarter results.
Masco (MAS) popped 1% in premarket action. The maker of kitchen cabinetry and other home improvement/construction-related products reports its third-quarter results on Tuesday. The stock has been in a retreat since July and trading below its 10-week moving average since early September.
Stanley Black & Decker (SWK) fell 0.5%. Stanley announced earlier this month it would pay $1.95 billion in cash to purchase the hand-tool business from Newell Brands (NWL).
Wynn Resports (WYNN) rose nearly 2%. Morgan Stanley upgraded Wynn Macau to overweight, from equal weight, but lowered the China-units price target to 13 from 14.
Diversified operator 3M (MMM) jumped 2% after an upgrade to overweight, from equal-weight, by Barclays. The note raised the price target on the stock to 194 from 171.
China Rallies, Oil Slips
Markets rallied in China, posting more modest gains in Japan, ahead of a busy week for earnings across both countries. Eurozone markets jabbed higher, boosted partly by the settling of a 10-month leadership stalemate in Spain, which cleared a path for interim Prime Minister Mariano Rajoy to establish a minority rule in parliament. The CAC 40 in Paris and the DAX in Frankfurt climbed a bit less than 1%. London's FTSE 100 remained effectively flat.
Oil futures were down, with West Texas Intermediate still holding above $50 a barrel. Gold dipped a fraction lower to below $1,265 an ounce. The dollar was mixed and bonds were steady, with the 10-year yield unchanged at 1.74%.
