Shares of General Electric Co. (GE) finished with a loss of 2.3%.
Sovereign Bancorp Inc. (SOV) announced late on Monday that it has agreed to sell the rest of itself to Spain's sell Banco Santander. The all-stock deal for the remaining 76% of Sovereign is worth $1.9 billion, and is expected to close in the first quarter of next year. Banco Santander already owns 24% of the troubled thrift-holding company.
Insurers climbed higher on Monday. Prudential Financial gained 38% to $49.95. MetLife Inc. (MET) added 25.92%.
General Motors (GM) rose 33.1% on reports the troubled car marker is in talks with Chrysler for a possible merger. Ford Motor Co. (F) gained 20.1% amid reports it is considering selling its controlling stake in Japan's Mazda Motor Corp.
Energy stocks gained as Crude Oil rebounded from its lows. Exxon Mobil Corp. (XOM) climbed 17.2% while Chevron Corp. (CVX) and Tesoro Corp. (TSO) jumped 20.9% and 29.4% respectively.
Aluminum maker Alcoa (Inc.) gained $2.57 or 22.84% to finish at $13.82.
Among technology stocks, iPhone maker Apple Inc. (AAPL) rose 14% to $110.26 after Citigroup raised its recommendation on the U.S. technology hardware and equipment sector to "market weight" from "underweight." Microsoft (MSFT) and Cisco Systems Inc. (CSCO) advanced 18.6% and 11.8% respectively.
Among healthcare, shares of Johnson & Johnson (JNJ) rallied 12.2% to $62.68.Abbott (ABT) climbed 9.6% after the company announced it intends to buy back as much as $5 billion of its common stock.
Money markets showed signs of easing on Monday. According to the British Bankers' Association the London interbank offered rate, or LIBOR, for three-month dollar loans fell 7 basis points to 4.75%. The European Banking Federation announced that the euro interbank offered rate, or EURIBOR, for one-week loans dropped 26 basis points to 4.37% today, the biggest decline this year. The dollar Libor-OIS spread narrowed 2 basis points to 362 basis points. The U.S. Treasury and bond market remained closed on Monday for the Columbus Day holiday.
European Stocks surged up on Monday. U.K. FTSE rallied 324.84 points or 2.3% to 4,256.90. The German DAX and the French CAC jumped 11.40% and 11.18% respectively.
Benchmark indices in Australia, Thailand, Hong Kong and India jumped at least 7%. Nikkei remained closed on Monday due to a holiday.
NYMEX Crude-oil for November delivery rose $3.49 (4.5%) to finish at $81.19 a barrel.
Disclosure: The author does not own any of the stocks mentioned.
