Stocks Close Up on Exxon, Dubai News

NEW YORK (TheStreet) -- Stocks closed higher on Monday, buoyed by Exxon Mobil's(XOM) dealmaking and relaxing anxiety about Dubai's credit.

The Dow Jones Industrial Average closed up 30 points, or 0.3%, to 10,501. The S&P 500 added 8 points, or 0.7%, to 1114 and the Nasdaq rose by 22 points, or 1%, at 2212.

XTO Energy's(XTO) stock traded over 15% higher on news that Exxon Mobil will buy the natural gas producer in an all-stock deal valued at $41 billion, which includes $10 billion of debt.

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"Exxon Mobil has been signaling that they've wanted to make a move into natural gas -- that they think natural gas will be a big part of their energy future -- so this acquisition seems to make sense," said Phil Flynn, energy analyst at Alaron Trading. "I think this opens the door to more mergers and acquisitions."

"I think Exxon Mobil looked at oil vs. gas and felt that this country, with our energy policy, will be forced to move into gas because we have all of this newfound supply and Exxon Mobil will be a part of it," added Flynn. "And I think it'll leave the door open for more deals."

The big integrated oil company's bet on natural gas strengthened prices on the commodity, as did reports for colder weather. The January natural gas contract on the Nymex settled 17 cents higher at $5.33 per million BTUs, jumping to an 11-month high. The news also lifted shares of other possible takeover targets, including Chesapeake Energy(CHK). Its stock climbed 5.8%.