NEW YORK, Jan. 26 (Chinese media) -- U.S. stocks advanced on
Monday over a takeover deal in the drug industry that offset a grim warning
about poor corporate earnings.
Pfizer is spending 68 billion U.S. dollars to buy
Wyeth. The deal will increase Pfizer's revenue by 50 percent and change it from
a pure pharmaceutical company into a diversified health care giant.
British bank Barclays said it would not need to raise
more capital, which helped boost investors' confidence and sent its shares up.
A report released on Monday showed that the existing
home sales rose 6.5 percent in December to an annual rate of 4.74 million units,
adding to the stocks' gains.
Credit ratings agency Standard Poor did not
lower General Electric's investment grade ratings despite its 44 percent drop in
fourth-quarter profit, which lifted GE shares by 4 percent.
However, negative news still weighed on the market,
limiting the gains. Rohm Haas says Dow Chemical does not plan to close the
pending acquisition of the specialty chemicals maker by the Jan. 27 closing
date. Rohm Haas shares plunged.
Caterpillar Inc., the world's top mining and
construction equipment maker, reported a 32-percent drop in its fourth-quarter
profit. Caterpillar is also expecting sharply lower results this year as the
world economy continues to contract.
Third-largest U.S. wireless provider Sprint Nextel
Corp. said on Monday that it is cutting about 8,000 positions in the first
quarter which could bring down annual costs by 1.2 billion dollars.
The Dow Jones industrial average rose 38.47 points,
or 0.48 percent, to 8,116.03. The Standard Poor's 500 Index added 4.62
points, or 0.56 percent, to 836.57. The Nasdaq Composite Index gained 12.17
points, or 0.82 percent, to 1,489.46.
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