US STOCKS-Wall St opens higher on M&A, Citi earnings

lunes 14 de julio de 2014 10:25 GYT

* Shire to accept Abbvie takeover offer

* Citigroup up after earnings, settlement

* Indexes up: Dow 0.75 pct, S&P 0.54 pct, Nasdaq 0.57 pct (Updates to market open, adds quote)

By Chuck Mikolajczak

NEW YORK, July 14 (Reuters) - U.S. stocks rose on Monday, buoyed by the latest flurry of merger activity and earnings from Citigroup, putting the S&P 500 on pace to climb for a second straight session.

London-listed drugmaker Shire Plc said it was ready to recommend to agree to an increased 31 billion pounds ($53 billion) takeover offer from Abbvie Inc, ending a long-running courtship largely motivated by tax rates. U.S.-listed shares of Shire rose 1.9 percent to $253.71 while Abbvie shed 0.9 percent to $54.45.

Generic drugmaker Mylan Inc said it would buy Abbott Laboratories' specialty and branded generics business outside the United States in an all-stock transaction valued at about $5.3 billion. Mylan shares advanced 1.9 percent to $51.17 before the opening bell. Abbott shares rose 0.5 percent to $41.52.

Citigroup Inc shares rose 3.9 percent to $48.83 as one of the top boosts to the S&P 500 after it posted second-quarter earnings and agreed to pay $7 billion to settle a U.S. government investigation into mortgage-backed securities. The S&P financial index gained 0.8 percent.

Earnings season will pick up speed this week, with 59 S&P 500 components scheduled to report. S&P 500 profits are seen growing 6.2 percent in the second quarter, according to Thomson Reuters data, down from the 8.4 percent growth forecast at the start of April. Revenue is seen up 3.1 percent.   Continuación...