Stocks Withstand Paris Terrorist Attacks, S&P Gains 1.5% -- US Commentary

(RTTNews) - U.S. stocks rallied Monday despite Friday evening's deadly terrorist attacks in Paris.

Concerns about a wider conflict prompted a sharp decline at the start of trading. However, the major averages quickly reversed the initial slide and raced into positive territory.

The S&P 5000 closed 30.14 points, or 1.5%, higher at 2,053.18. The Dow Jones Industrial Average climbed 237.77 points, or 1.4%, to 17,483.01. The Nasdaq Composite ended the day up 56.73 points, or 1.2%, at 4,984.62.

Wall Street stabilized after a sharp decline over the past week or so. Last week, the Nasdaq plunged by 4.3 percent, while the Dow and the S&P 500 plummeted by 3.7 percent and 3.6 percent, respectively.

New stats on the manufacturing sector were released Monday morning. The impact was blunted, as traders focused on the Paris attacks and general momentum.

The data showed that manufacturing performance in New York State continued to contract in November. The New York Federal Reserve said its Empire State index came in at negative 10.7 for November. This compared to a reading of negative 11.36 for the previous month.

In corporate news, Marriott International, Inc. (MAR) and Starwood Hotels & Resorts Worldwide, Inc. (HOT) said they have approved a merger agreement. Under the deal, which creates the world's largest hotel company, Marriott will pay $12.2 billion, consisting of $11.9 billion of stock and $340 million of cash.

Marriott shares rose 1.35 percent.

Taco Bell, owned by Yum! (YUM) said in an announcement it will serve only cage-free eggs by Dec. 31, 2016. Shares were down 0.9 percent.