Stocks Open Week With Rally

XM Satellite Radio (XMSR Quote) also lost more money in its latest quarter, missing the consensus target, but shares rode 4.3% higher. XM's merger partner Sirius (SIRI Quote), which is expected to post its results following the close of trading, moved up 4.2%.

Meanwhile, confirmation came that Cablevision (CVC Quote) has agreed to pay Tribune Co. $650 million for the Long Island newspaper Newsday. Over the weekend, Rupert Murdoch's News Corp. (NWS Quote) retracted its own $580 million offer for the paper. Cablevision slipped 2.4%, and News Corp. was hugging the flat line.

Elsewhere, after Friday's market close FedEx (FDX Quote) said harsh economic conditions and climbing fuel prices have squeezed its bottom line, and the package-delivery outfit slashed its current-quarter earnings forecast. Shares were little changed at $90.65.

Treasury prices were erasing early gains. The 10-year note lost 4/32 in price to yield 3.79%, and the 30-year bond slipped 2/32 in price, yielding 4.53%.

Markets abroad were mixed. In Asia, Tokyo's Nikkei 225 added 0.6% overnight. Hong Kong was closed. Among European exchanges, the FTSE 100 in London and the Paris Cac finished up roughly 0.3% apiece, and Germany's Xetra Dax climbed 0.5%.