Updated from 9:57 a.m.
Stocks are climbing Monday morning as mergers and acquisitions -- led by AT&T's(T) - Get Report blockbuster agreement to buy Time Warner (TWX) -- and earnings reports dominate market movement, while positive manufacturing data also gave a boost.
The S&P 500 is up 0.39, the Dow Jones Industrial Average is climbing 0.43%, and the Nasdaq is adding 0.74%.
An October preview of Markit's U.S. manufacturing data came in at 53.2, vs. a September reading of 51.5. This shows growth in new orders and is a positive sign for U.S. manufacturers.
AT&T agreed to buy Time Warner in an $85.4 billion deal, paying $107.50 a share. If approved by regulators, the deal will create a behemoth media and telecommunications company that combines internet services and programming.
The deal values Time Warner at a 20% premium to its $89.48 closing price on Friday. Time Warner shareholders would receive $53.75 a share in cash and $53.75 a share in AT&T stock. The total transaction value is $108.7 billion, after including Time Warner's net debt, the companies said.
AT&T reported consolidated revenues for the quarter were $40.9 billion, up 4.6%. The company increased its quarterly dividend to 48 cents a share, or a 5.2% yield at the current valuation.
Time Warner shares are down 2.2% in trading on Monday, while AT&T shares are 1.8% lower.
In a deal valued at $8.3 billion, including debt, Rockwell Collins (COL) agreed to acquire B/E Aerospace (BEAV) . Rockwell Collins is trying to increase its exposure to the commercial aircraft cabin. On the deal news, Rockwell Collins stock fell 5.5%. B/E Aerospace shares jumped 15.4%.
In other deal news, TD Ameritrade(AMTD) - Get Report said Monday that it entered into a "definitive agreement" to purchase online brokerage Scottrade Financial Services in a cash-and-stock deal valued at $4 billion.
TD Ameritrade, the biggest discount brokerage by trade executions, said it expected to realize about $450 million in combined annual expense synergies, and more than $300 million in additional longer-term opportunities once the deal closes. TD Ameritrade's shares were down 2.4%.
Chinese investment firm China Oceanwide Holdings agreed to acquire Genworth Financial(GNW) - Get Report for about $2.7 billion, or $5.43 a share in cash. Genworth shares slumped 10.7% in trading Monday.
China Oceanwide also said it would use $600 million in cash to tackle Genworth debt, and cash of $525 million for the U.S. life insurance businesses.
The Federal Reserve Open Market Committee enters a blackout period prior to its meeting on Nov. 1 and 2; before that, four Fed speakers are expected to speak Monday.
New York Fed Bank President William Dudley spoke at 9 a.m. on the U.S. Treasury market, while St. Louis Fed President James Bullard spoke at 9:05 a.m. to the Association for University Business and Economic Research in Fayetteville, Ark. In the afternoon, Chicago Fed President Charles Evans will discuss monetary policy, and Fed Board Governor Jerome Powell is set to speak on the future of Treasury market settlement transactions.
Nearly a third of S&P 500 companies are scheduled to report earnings this week.
T-Mobile(TMUS) - Get Report reported adjusted earnings of 27 cents a share, beating estimates of 21 cents a share, based on the FactSet consensus estimate. The mobile communications service company said total revenue increased 17.8% to $9.2 billion. It added 2 million customers during the quarter. T-Mobile's shares jumped more than 7% and are up more than 27% this year.
VF Corp.(VFC) - Get Report , an apparel and footwear company with brands including North Face, Vans and Timberland, reported that third-quarter earnings were $1.20 a share, beating expectations of $1.15 a share, compared to $1.07 a share from a year ago. But sales for the quarter fell 1% from a year ago and the company cut its full-year revenue outlook. VF is down 0.6%.
will release its results for the three months through September after the market closes Monday. The San Francisco-based company is expected to report earnings of 73 cents a share, compared to 62 cents a year ago. Visa's shares are up 0.8%.
Kimberly-Clark(KMB) - Get Report , a maker of consumer goods, missed earnings expectations. The Irving, Texas-based company was expected to report earnings of $1.54 a share, compared to $1.51 a share a year ago. But adjusted earnings were $1.52 a share on revenue of $4.59 billion. Kimberly-Clark's shares fell 3%, bringing its year-to-date loss to 9%.