Merger news, home sales data boost US stocks

Stocks made a strong move higher Monday as a new spate of merger activity and a surprising rise in home sales restored investors’ confidence in the economy and eased fears of inflation and higher interest rates.

The news of Valero Energy Corp.’s eight billion dollars takeover of oil refiner Premcor Inc. – creating the largest oil refiner in North America - reassured investors that corporate America was still willing to make large deals despite economic uncertainty.