Abbott Lab deals sparks Dow rise

NEW YORK (AP) — Corporate dealmaking is boosting investors' hopes for a recovery in the economy.

Stocks jumped Monday after Abbott Laboratories said it would buy the pharmaceutical business of Belgian chemicals maker Solvay for $6.6 billion and Xerox Corp. agreed to acquire Affiliated Computer Services for about $6.4 billion.

A weaker dollar is boosting commodity prices, which in turn helped send materials and energy stocks higher.

All major indexes rose more than 1 percent, including the Dow Jones industrial average, which added 140 points.

The takeover moves are a welcome sign that businesses have enough faith in a recovery in the economy to pursue acquisitions. In the past year, companies grew so worried about the economy that they were hesitant to part with cash and often had trouble lining up financing.

"It's encouraging to all investors when you see companies buy because basically what that says is they're in a more aggressive mode as opposed to being in the fetal position," said Mark Coffelt, portfolio manager at Empiric Funds in Austin, Texas.

In midday trading, the Dow rose 140.12, or 1.5 percent, to 9,805.31.