Stocks Rise on Mergers, Falling Oil

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Stocks moved higher for a third session Monday, with the Nasdaq jumping to a six-month high, on slipping oil prices and a round of corporate mergers.


The Dow Jones Industrial Average rose 70.58, or 0.7 percent, to 10,519.72. The S & P; 500 Index rose 7.58, or 0.6 percent, to 1,219.44. The Nasdaq Composite Index rose 22.55, or 1.1 percent, to 2,135.43.


Crude futures ended lower after Hurricane Dennis spared the market from a disruption in supply at a time of high demand. Light sweet crude for August delivery dipped 71 cents to $58.92 a barrel on New York Mercantile Exchange.


And on this “merger Monday,” VNU agreed to buy IMS Health Inc. for $6.9 billion in cash and shares, and Sprint Corp. said it would acquire U.S. Unwired Inc., a Louisiana-based Sprint affiliate, for about $1.3 billion in cash. Also, The Wall Street Journal reported that Kohlberg Kravis Roberts & Co. and Silver Lake Partners have emerged as the leading bidder for Agilent Technologies Inc.’s semiconductor products business.


Among local movers, shares of Staar Surgical Co. plunged 20.8 percent to $3.51 after the Food and Drug Administration told the Monrovia-based maker of eye surgery products

that it continues to violate a number of regulations, warning it is prepared to take action against the company. The FDA said Staar failed to correct numerous violations.


WPT Enterprises Inc. sunk 12.5 percent to $23.20 after the L.A.-based owner of the World Poker Tour television show said it was unable to substantiate the credibility of a $700 million cash bid for the company made by professional poker player Doyle Brunson. WPTE said attempts to obtain more information were unsuccessful. The offer expires on Tuesday at 5:30 p.m.


MannKind Corp. fell 4.3 percent to $10.44 after the Valencia-based biopharmaceutical company’s stock was downgraded to “underperform” from “hold” by analyst Adam Walsh at Jefferies & Co. The 12-month price target was set at $6 per share.


And shares of Herbalife Ltd. gained 3.3 percent to $22.43 after the L.A.-based nutritional products company’s stock was raised to “strong buy” from “buy” by analyst Scott Van Winkle at Adams Harkness. The 12-month price target was set at $30 per share.

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