Stocks Finish Higher for Third Session on Deal News

NEW YORK (TheStreet) -- Stocks rose for the third straight day to finish strong Monday as deal news and dividend announcements boosted investors confidence, offsetting global trouble spots.

The Dow Jones Industrial Average gained 178 points, or 1.5% to close at 12,036, after surging as much as 219 points earlier in the session. The S&P 500 added 19 points, or 1.5%, at 1298, and the Nasdaq finished ahead by 48 points, or 1.8%, at 2692.

Telecom stocks were in focus Monday after AT&T(T) said on Sunday that it will acquire T-Mobile USA from Germany's Deutsche Telekom(DTEGY), potentially creating the largest U.S. wireless carrier, in a cash-and stock deal valued at $39 billion. AT&T's stock rose 1.1% to $28.26 and shares of Deutsche Telekom listed on the New York Stock Exchange jumped 10.9% to $15.07.

Shares of smaller rival Sprint Nextel(S) plunged 13.5% at $4.37, while Verizon(VZ) ticked up 1.7% at $36.46.

News that Japan is making progress, although slowly, in its effort to contain nuclear leaks after its devastating earthquake and tsunami also helped ease market concerns. The U.S. Nuclear Regulatory Commission said that the situation in the plant was on the "verge of stabilizing."

Hong Kong's Hang Seng rose 1.7%, while the Tokyo Stock Exchange was closed for a public holiday. London's FTSE gained 1.2%, and the DAX in Frankfurt finished higher by 2.3%.

Oil prices, however, jumped as the U.S. and its allies ratcheted up air strikes against troops loyal to Libyan dictator Moammar Gadhafi over the weekend.

The May crude contract was gaining $1.24 to settle at $103.09 a barrel. Gold, considered a safe haven in times of uncertainty, was also rising on the conflict in Libya.

The April gold contract rose by $10.3 to settle at $1,426.40 an ounce.

"On a technical level, I think the market felt that it was oversold based on a nervous marketplace mostly driven by Japan, but the corporate news -- especially the AT&T merger -- is showing that the market is pretty resilient," said Jay Suskind, senior vice president at Duncan Williams.