Stocks Rise and Stay There

(Updated with stock and commodity prices.)

NEW YORK (TheStreet) -- Wall Street cheered deal developments and a Cisco(CSCO Quote) upgrade Monday, while upcoming economic data could pave the way for another volatile week.

The Dow Jones Industrial Average rose 124.17 points, or 1.3%, to 9789.36, while the S&P 500 ticked up 18.6 points, or 1.8%, to 1062.98. The Nasdaq Composite advanced 39.82 points, or 1.9%, to 2130.74.

Among the day's movers, Cisco gained 4.5% to $23.63 after Barclays raised its rating for the stock to overweight.

Tech stocks also got a boost as Xerox (XRX Quote) said it agreed to buy Affiliated Computer Services(ACS Quote) for $6.4 billion in cash and stock. Affiliated Computer Services surged 14% to $53.86, but Xerox shares slid 14.4% to $7.68.

Mixed economic data helped push the major averages as much as 2% lower last week, and the new week will likely bring volatility with fresh readings on consumers, manufacturing and unemployment.

"We're fully expecting to see daily 1% to 1.5% moves, depending on how the economic data come out -- again there is a lot of emotion built into especially the unemployment numbers on Friday as confirmation that the economy is getting better," says Paul Nolte, director of investments at Hinsdale Associates.

But it was deal developments that were moving stocks Monday. Among those making buzz, Abbott Labs (ABT Quote) signed an agreement to buy the pharmaceuticals business of Belgium's Solvay for $6.6 billion in cash. Shares advanced 2.6% to $48.58.

"What it tell us is the credit market are coming back, and we know that the credit markets got us into this trouble," says Ryan Detrick, senior technical strategist at Schaeffer's Investment Research, "and now there are signs of life in M&A and IPOs, so those are very bullish things." Click below to hear more from Detrick on M&A, and what to expect from this week's economic data.

"I think that's the big driving factor: that we have companies that are willing to open up their pocket book whether it's domestic or international," agrees Nolte. "At least over the short term, it's a good thing, and then we have to see is it really going to be a benefit or is it going to be out of necessity -- we won't know that for a few quarters."

On a smaller scale, Johnson & Johnson(JNJ Quote) has purchased 14.6 million shares, or 18%, of Dutch biotechnology company Crucell(CRXL Quote), for 301.8 million euros ($441 million) under a partnership to develop flu vaccines. Johnson & Johnson shares added 1.1%to $61.27, while Crucell shares fell 6.6% to $22.13.

Meanwhile, Kraft Foods(KFT Quote) is preparing a hostile bid for Cadbury(CBY Quote), valuing the British confectionery business at about 11 billion pounds ($17.4 billion), U.K.'s Observer newspaper reported over the weekend. Shares fell 0.3% to $26.17.