Takeovers, anticipated European deal lift stocks

Friday, October 21, 2011, Vol. 35, No. 42

NEW YORK (AP) — Stock indexes are closing at the highest point since the U.S. debt limit showdown in August. A round of corporate takeovers and reports that Europe's bailout fund will be larger than originally thought drove the market higher.

Mattel and J.M. Smucker were among companies that rose after announcing acquisitions. Widespread anticipation that European leaders will reach a deal Wednesday to prevent another credit crisis also spurred buying.

The Dow closed Monday with a gain of 105 points, or 0.9 percent, to 11,914.

The S&P 500 rose 16, or 1.3 percent, to 1,254. The Nasdaq jumped 62, or 2.3 percent, to 2,699. The Nasdaq turned positive for the year.

Five shares rose for every one that fell on the New York Stock Exchange. Volume was average at 4.2 billion shares.