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U.S. Stocks Open Week to the Upside

Mike Taylor

Stocks in New York opened with gains Monday, as the U.S. and China each unveiled new plans to prop up companies and economies wounded by the financial crisis.

The Dow Jones Industrial Average was up 207 points to 9151, and the S&P 500 climbed 10 to 941. The Nasdaq was adding 30 points to 1677.

Financial firms were in focus as Monday's session got under way. Troubled insurer American International Group (AIG Quote) received a revamped $150 billion bailout package from the U.S. government and reported a third-quarter loss of $24.47 billion, or $9.05 a share, compared with year-earlier net income of $3.09 billion, or $1.19 a share.

Asian markets closed higher following China's announcement of a $586 billion stimulus package to bolster consumer and business confidence. European indices, including the FTSE in London and the DAX in Frankfurt, also were marking gains.

Back in the U.S., Citigroup (C Quote) is in talks to acquire a bank, according to a report in the Wall Street Journal. Earlier this year, Citi had been a suitor to Wachovia(WB Quote), only to have its offer trumped by Wells Fargo(WFC Quote).

Outside the financials, power company NRG (NRG Quote) late Sunday rebuffed a $6.08 billion buyout offer from Exelon(EXC Quote).

Electronics retailer Circuit City (CC Quote) filed for Chapter 11 bankruptcy protection Monday.

Shipping company Deutsche Post said it would cut 9,500 jobs and reduce U.S. operations of its DHL Express business.

On the earnings side, financial conglomerate Berkshire Hathaway (BRK.A Quote) announced a 77% decline in third-quarter profit that owed in part to unrealized losses on derivatives and other securities.

Telecom firm Nortel Networks (NT Quote) announced a third-quarter loss and said it would cut its head count by 1,300.

Meanwhile, mortgage company Fannie Mae(FNM Quote) reported a $29 billion loss for the third quarter.

Meat products producer Tyson Foods (TSN Quote) announced an increase in third-quarter earnings, and fast-food concern McDonald's (MCD Quote) said global same-store sales increased 8.2% in October.

Looking at commodities, crude oil was climbing $3.69 to $64.73. Gold was up $25 to $759.20 an ounce.

Longer-dated U.S. Treasury securities were mixed. The 10-year note was losing 5/32 to yield 3.81%, and the 30-year was even in price to yield 4.27%. The dollar was losing ground vs. the euro and pound but gaining on the yen.