Wall Street extended its advance Monday as investors weighed several takeover developments and placed bets ahead of the Federal Reserve's decision on interest rates, AP reported. Stocks rose after a series of acquisitions reassured investors that corporations still feel the economy is robust enough to strike deals. There was about $45.4 billion (¤34.45 billion) worth of acquisitions announced by Standard & Poor's 500 companies last week, setting this year to be the best for M&A since 2000. Driving the Dow Jones industrials was American International Group Inc., which agreed to buy the U.S. port operations from state-owned Dubai Ports World. Hedge fund SAC Capital Advisors LLC bought a stake in miner Phelps Dodge Corp., and said it would oppose the company's planned takeover by Freeport-McMoRan Copper & Gold Inc. Speculation about pending deals also helped the market. Medical device maker Biomet Inc. and travel reservation company Sabre Holdings Corp. rose on reports they might be acquisition targets. However, light volume on Monday indicated investors were a bit more cautious as they adjusted their positions before the Fed's meeting Tuesday. The central bank raised rates 17 straight times starting in June 2004, then left them unchanged at its last three meetings. In midday trading, the Dow Jones industrial average rose 17.14, or 0.14 percent, to 12,324.63. Broader stock indicators were narrowly higher. The S&P 500 index rose 3.16, or 0.22 percent, to 1,413.00, and the Nasdaq composite index was up 11.07, or 0.45 percent, at 2,448.43. Bonds rose, with the yield on the benchmark 10-year Treasury note falling to 4.52 percent from 4.55 percent late Friday. The dollar was mixed against other major currencies, while gold prices moved higher. The price of light sweet crude fell 23 cents to $61.80 on the New York Mercantile Exchange.
