U.S. stocks opened higher and gained in early trading Monday as China's strong economic data buoyed the sentiment and several merger deals boosted confidence in equities.
China retail sales rose at an 18.7-percent annualized rate in November, while inflation rose by a higher than expected 5.1 percent, up from 4.4 percent in October.
General Electric Co. said it will buy British oilfield services company Wellstream Holdings Plc for about 800 million pounds to expand its subsea equipment and services portfolio. And Dell Inc. will acquire Compellent Technologies Inc.. The activities of M&A boosted the sentiment.
Besides, the tax cut compromise between President Barack Obama and the Republicans was scheduled for its first vote in the Senate on Monday afternoon. The package including extension of tax cuts first introduced in the Bush administration for another two years, extension of unemployment insurance and one-year reduction in Social Security taxes, is expected to get pass easily.
The Dow Jones industrial average added 39.02 points, or 0.34 percent, to 11,449.34. The Standard & Poor's 500 index rose 4.80, or 0.39 percent, to 1,245.20 and the Nasdaq was up 2.39 points, or 0.09 percent, to 2,639.93.
