Wall Street rises on Mexico relief, M&A cheer

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Wall Street rises on Mexico relief, M&A cheer
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U.S. stocks were higher on Monday after the United States dropped plans to impos...

- U.S. stocks were higher on Monday after the United States dropped plans to impose tariffs on Mexican goods, with a couple of multi-billion dollar deals adding to the upbeat mood.

“The reversal on Mexican tariffs removes one potential source of worry for investors about corporate profits and economic growth and helps improve sentiment towards stocks,” said Sameer Samana, senior global market strategist at Wells Fargo Investment Institute. Among major deals, United Technologies Corp agreed to combine its aerospace business with defense contractor Raytheon Co to create a new company worth about $121 billion.

“It is not just about the market, it is the underlying economy which is not likely to weaken if you have these signs of business optimism,” said Willie Delwiche, investment strategist at Robert W. Baird in Milwaukee. At 12:55 p.m. ET the Dow was up 145.03 points, or 0.56%, at 26,128.97, the S&P 500 was up 22.97 points, or 0.80%, at 2,896.31 and the Nasdaq Composite was up 118.02 points, or 1.52%, at 7,860.12.Chemical maker LyondellBasell Industries rose 5.8%, the most among S&P companies, following a 37 million share buyback program on Monday.

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