* Caterpillar Q3 revenues post record
* Cigna to buy Medicare company HealthSpring
* Indexes up: Dow 0.6 pct, S&P 0.8 pct, Nasdaq 1.2 pct
* For up-to-the-minute market news see [STXNEWS/US]
(Updates to early morning)
By Angela Moon
NEW YORK, Oct 24 U.S. stocks rose on Monday
adding to three weeks of gains for the S&P after strong
earnings from Caterpillar and a number of proposed acquisitions
boosted investor appetite for risky assets.
Caterpillar Inc (CAT.N) jumped 4.5 percent to $91.38 after
the heavy equipment maker reported a quarterly profit that
topped estimates on record revenues. For details, see
HealthSpring Inc HS.N soared 33.5 percent to $53.62 after
health insurer Cigna Corp (CI.N) said it will buy the Medicare
insurer for about $3.8 billion. [ID:nN1E79N08U]
Oracle Corp ORCL.O will buy a cloud-based customer
service company RightNow Technologies Inc RNOW.O for about
1.5 billion dollars. RightNow jumped 19.1 percent to $42.82 and
Oracle was up 1 percent at $32.44. [ID:nN1E79N096]
But market gains were limited as European policymakers
deferred a final decision on a strategy to fight the region's
sovereign debt crisis as they neared agreement on bank
recapitalization and on how to leverage a rescue fund to try to
stop bond market contagion. The leaders are due to meet on
"I think the market is still hoping for a good answer from
the summit and the earnings are really lending support to the
market ... this could be enough to break the recent trend of
sort of topping off at around 1,230 and move up higher," said
Andrew Fitzpatrick, director of investments at Hinsdale
Associates in Chicago.
The Dow Jones industrial average .DJI jumped 71.18
points, or 0.60 percent, at 11,879.97. The Standard & Poor's
500 Index .SPX was up 10.17 points, or 0.82 percent, at
1,248.42. The Nasdaq Composite Index .IXIC put on 32.65
points, or 1.24 percent, at 2,670.11.
The S&P 500 ended Friday with a third straight week of
gains on optimism over Europe and as corporate earnings came in
generally as expected.
Recent gains have pushed the S&P 500 to the top of its
trading range between 1,230 and 1,250, where it has struggled
to advance. Many investors are looking for progress in Europe
before good earnings reports can push equities much higher.
Light volume suggested investors weren't entirely convinced
of the move.
Equity markets have been susceptible to rapid and violent
swings in recent weeks as traders latch on to headlines out of
Google Inc (GOOG.O) has spoken to at least two private
equity firms about help in financing a deal to buy Yahoo Inc's
YHOO.O core business, the Wall Street Journal reported over
the weekend, citing a source. [ID:nN1E79L02S] Yahoo shares rose
1.7 percent at $16.40.
(Reporting by Angela Moon; editing by Jeffrey Benkoe)