As the crisis in japan starts to stabilize and announcements of two large US companies buying their competitors, the Dow sees big gains in stocks this week. The Dow Jones industrial average closed above 12,000 for the first time since the Fukushima Daiichi nuclear power plant failed following a massive earthquake and tsunami.
In the United States, AT&T said it would buy rival T-Mobile USA for $39 billion, creating the largest U.S. cell phone company. Charles Schwab said it would buy online brokerage services provider OptionsXpress for $1 billion. The deals raised hopes that more corporate buyouts could be on the way as businesses become more confident in the economic recovery.
The Dow Jones industrial average rose 178.01 points, or 1.5 percent, to 12,036.53. The index has gained 3.6 percent over the past three trading days, its largest jump over the same amount of time since September.
The S&P 500 index gained 19.18, or 1.5 percent, to 1,298.38. The Nasdaq composite rose 48.42, or 1.8 percent, to 2,692.09.
Energy stocks led the market higher after oil prices climbed back above $103 a barrel. Schlumberger, which helps companies drill for oil and gas, rose 4.4 percent to $89.73. ConocoPhillips rose 2.9 percent to $77.55.
Worries about Japan's stricken nuclear reactors eased after the Nuclear Regulatory Commission said the situation at the Fukushima Daiichi plant appeared to be stabilizing. Containment at three of the plant's six reactors was intact, the commission said.
Tiffany rose 5.1 percent to $60.22 after reporting higher-than-expected earnings. The jeweler said Japan's earthquake could hurt its earnings because of store closings and limited hours. The company does 18 percent of its business there.
The violence in Libya and Japan's earthquake have led to many large swings in the Dow since late February. The Dow rose or fell by 100 points or more during three days last week. Eight of the 15 trading days since the start of March have had swings that large.
In the latest signs of trouble in the U.S. housing market, the National Association of Realtors reported that sales of previously occupied homes fell 10 percent last month. The supply of unsold homes remains relatively high at 3.5 million.
Five stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 4.5 billion shares.
