Banks lead early gains on Wall Street

NEW YORK (AP) — The latest on developments in financial markets (All times local):

9:35 a.m.

Stocks are opening modestly higher on Wall Street, led by gains in banks as interest rates continue to rise.

Investors were also encouraged by news of several more corporate deals early Monday.

Harman International, which makes audio, safety and entertainment systems for cars, soared 25 percent after agreeing to be acquired by Samsung Electronics.

Bond yields continued to rise sharply as investors anticipated that the spending plans of president-elect Donald Trump could lead to higher inflation.

The Dow Jones industrial average gained 60 points, or 0.3 percent, to 18,907. Caterpillar and Goldman Sachs rose the most in the Dow.

The Standard & Poor’s 500 index rose 2 points, or 0.1 percent, to 2,167. The Nasdaq composite was little changed at 5,235.