Stocks rise on optimism from buyouts
NEW YORK — Major stock indexes rose to their highest levels in more than a month yesterday after corporate buyouts raised hopes about the economy.
The Dow Jones industrial average rose 79 points. The Standard & Poor's 500 index, the basis of many mutual funds, erased its losses for the year. The Nasdaq composite index also turned positive for 2010 after a Japanese drugmaker said it was pursuing OSI Pharmaceuticals Inc. and SanDisk Corp. raised its revenue forecast.
The biggest boost for the market came from insurer American International Group Inc., which agreed to sell its prized Asian life insurance business to Britain's Prudential PLC for $35.5 billion.