U.S. stocks up sharply at midday

Pair of corporate deals, signs of strength in manufacturing boost market

12/16/2013
ASSOCIATED PRESS
  • Productivity-2

    FILE - In this Thursday, Oct. 10, 2013, file photo, employees at Sheffield Platers Inc. work on the factory floor in San Diego. The government issues its second and final estimate of worker productivity and labor costs in the July-September quarter on Monday, Dec. 16, 2013. (AP Photo/Lenny Ignelzi, File)

    ASSOCIATED PRESS

    • NEW YORK — Stocks are rallying at midday, powered by two big corporate deals and news that suggests the economy is getting stronger.

    As of noon, the Dow Jones industrial average was up 145 points at 15,901. The Standard & Poor’s 500 index climbed 12 points to 1,787. The Nasdaq was higher by 29 points at 4,030.

    All 10 industry groups in the S&P 500 were higher, led by energy and technology.

    LSI Corp. rose after chipmaker Avago Technologies said it was buying the company for $6.6 billion. AIG was up after it announced the sale of its aircraft leasing business for about $5.4 billion.

    The Federal Reserve said factory production accelerated in November as auto production surged. The gains show manufacturing is strengthening and could help boost economic growth.