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U.S. stocks rally amid upbeat earnings, acquisition news

Xinhua, October 25, 2016 Adjust font size:

U.S. stocks ended higher Monday as Wall Street digested positive earnings reports as well as corporate merger announcements.

The Dow Jones Industrial Average rose 77.32 points, or 0.43 percent, to 18,223.03. The S&P 500 gained 10.17 points, or 0.47 percent, to 2,151.33. The Nasdaq Composite Index increased 52.43 points, or 1.00 percent, to 5,309.83.

Shares of T-Mobile spiked 9.50 percent to 51.19 U.S. dollars apiece Monday after the company posted better-than-expected quarterly results.

The U.S. wireless carrier announced Monday net income of 366 million dollars, or 42 cents per share, for the third quarter of 2016, compared with 138 million dollars, or 15 cents a share during the same quarter last year.

The latest data from Thomson Reuters showed that the S&P 500 companies' blended earnings in the third quarter of 2016 are expected to rise 1.1 percent year on year, while the revenues are forecast to increase 2.5 percent.

On other corporate news, AT&T Inc. on Saturday announced to buy Time Warner Inc. for 85.4 billion U.S. dollars with an aim to reshape the mobile company into a media giant.

Shares of AT&T fell 1.68 percent to 36.86 dollars apiece after the announcement on Monday, while shares of Time Warner dropped 3.06 percent to 86.74 dollars apiece.

Hilton Worldwide Holdings Inc. said Monday that Chinese company HNA will acquire an approximate 25 percent equity interest in Hilton from affiliates of Blackstone.

The transaction is valued at approximately 6.5 billion dollars, or 26.25 dollar per share in cash, reducing Blackstone's interest in Hilton to approximately 21 percent.

Following the release, shares of Hilton edged up 0.13 percent to 22.94 dollars apiece Monday, while shares of Blackstone jumped 2.99 percent to 24.79 dollars apiece.

U.S. economic data also came out positive. Adjusted for seasonal influences, the Markit Flash U.S. Manufacturing Purchasing Managers' Index rebounded from a three-month low of 51.5 in September to 53.2 in October, beating market consensus of 51.2. Endit