U.S. stocks rose on Monday as Abu Dhabi's $10 billion in aid to help Dubai avoid default eased concerns, and a takeover deal by Exxon Mobil Corp raised optimism about mergers and acquisitions.
Citigroup Inc's plan to repay the U.S. government about $20 billion in bailout funds also helped buttress optimism.
Abu Dhabi said on Monday it will provide Dubai $10 billion in bailout money, with $4.1 billion for payment on a maturing bond.
It's helping -- everyone kind of scratched their head, so we can't rely on a country or city-state to step up?' said Edward Hemmelgarn, chief investment officer of Shaker Investments in Cleveland.
People have just gone back to it, helped calm fears a little bit and then people think about something else.
The Dow Jones industrial average <.DJI> gained 33.03 points, or 0.32 percent, to 10,504.53. The Standard & Poor's 500 Index <.SPX> rose 7.13 points, or 0.64 percent, to 1,113.54. The Nasdaq Composite Index <.IXIC> climbed 19.03 points, or 0.87 percent, to 2,209.34.
Citi's stock slumped 6.6 percent to $3.69.
Shares of XTO climbed 15 percent to $47.72, while Exxon Mobil shed 4.4 percent to $69.64. The NYSE Arca Natural Gas index <.XNG> gained 4.6 percent.
The First Trust ISE-Revere Natural Gas Index Fund
Sun Microsystems Inc
S&P also said Bristol-Myers Squibb split-off Mead Johnson Nutrition Co
(Editing by Kenneth Barry)