U.S. stocks gain on Citi earnings, takeover news; Dow rises 0.66%


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Investing.com - Better-than-expected earnings at Citigroup coupled with an uptick in mergers and acquisitions sent U.S. stock prices rising on Monday

At the close of U.S. trading, the Dow 30 rose 0.66%, the S&P 500 index rose 0.48%, while the NASDAQ Composite index rose 0.56%.

The Volatility S&P 500 index, which measures the outlook for market volatility, was down 3.31% at 11.68.

Citigroup Inc (NYSE:C) reported adjusted net income at $1.24 a share, beating analyst expectations of $1.05 a share, which bolstered financial stocks especially.

Citigroup also said it agreed to pay $7 billion to settle charges that it sold bad mortgages during the financial crisis, a move that will prevent a Justice Department civil suit, which also drew applause on Wall Street as did the bank's better-than-expected trading revenue and falling credit costs.

Last week, U.S. financial institution Wells Fargo reported that profits rose by 3% to $5.42 billion in the second quarter thanks to an improving housing sector and fewer bad loans, which also pleased investors.

Elsewhere, Aecom Technology said it would pay about $4 billion to purchase construction-management company URS, while drugmaker Shire said it was considering a takeover offer from AbbVie, a $53 billion deal.

More earnings are due this week, and Citigroup's report boosted expectations for more pleasant surprises.

Leading Dow Jones Industrial Average performers included Visa Inc (NYSE:V), up 1.90%, UnitedHealth Group Incorporated (NYSE:UNH), up 1.70%, and Goldman Sachs Group Inc (NYSE:GS), up 1.37%.

The Dow Jones Industrial Average's worst performers included Merck & Company Inc (NYSE:MRK), down 0.45%, Wal-Mart Stores Inc (NYSE:WMT), down 0.34%, and Cisco Systems Inc (NASDAQ:CSCO), down 0.29%.

European indices, meanwhile, ended the day higher.

After the close of European trade, the DJ Euro Stoxx 50 rose 0.96%, France's CAC 40 rose 0.78%, while Germany's DAX rose 1.21%. Meanwhile, in the U.K. the FTSE 100 rose 0.84%.

On Tuesday, stocks should move on Federal Reserve Chair Janet Yellen's testimony before Congress.

Elsewhere, the U.S. is to release data on retail sales, the government measure of consumer spending, which accounts for the majority of overall economic activity. The U.S. is also to release data on import prices, business inventories and manufacturing activity in New York state.

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