US STOCKS-Wall St jumps as G20 says cheap money to continue

* G20 pledge to keep aid flowing until recovery reassured

* Kraft in formal takeover Cadbury bid, terms unchanged

* GE, Comcast see $30 bln valuation on NBC-Comcast JV

* Dow up 1.6 pct, S&P up 1.6 pct, Nasdaq up 1.5 pct * For up-to-the-minute market news, click [STXNEWS/US] (Updates to midday, changes byline)

By Edward Krudy

NEW YORK, Nov 9 (Reuters) - U.S. stocks jumped on Monday, extending gains from the previous week, on renewed risk-taking sentiment after the Group of 20 pledged to keep economic stimulus in place until a recovery was assured.

Corporate mergers and acquisitions also boosted the market, with General Electric Co (GE.N) gaining 3.4 percent to $15.85 after a source said GE and Comcast Corp (CMCSA.O) agreed on a valuation of around $30 billion for a joint venture between NBC Universal and Comcast. For details, see [ID:nN08209497]

G20 finance ministers and central bankers agreed over the weekend to keep government aid flowing, boosting global stocks while pressuring the dollar as high-yielding and commodity-linked currencies benefited. [ID:nLQ516726] and [ID:nL9362990]

Stocks closed higher last week even as the unemployment rate in the United States rose to 10.2 percent in October. The S&P 500 is up about 61 percent from a 12-year closing low in early March.

"It's basically the fact that we have free money right now, basically we're reinflating things and that is what's taking place rather than evidence of a solid recovery," said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois.

The Dow Jones industrial average .DJI gained 155.23 points, or 1.55 percent, to 10,178.65. The Standard & Poor's 500 Index .SPX rose 17.18 points, or 1.61 percent, to 1,086.48. The Nasdaq Composite Index .IXIC added 30.57 points, or 1.45 percent, to 2,143.01.

Kraft Foods Inc (KFT.N) formalized a proposed takeover of Britain's Cadbury Plc (CBRY.L), but failed to improve the terms of its initial approach. Kraft was down 1.2 percent at $26.44. [ID:nL9380032]

Healthcare companies were in the spotlight after the U.S. House of Representatives approved a healthcare reform bill on Saturday that would include a government-run health insurance option to compete with private insurers.

The Morgan Stanley Healthcare Payor index .HMO was up 1.5 percent, while the NYSE Arca Pharmaceutical index .DRG rose 1.6 percent.

Shares of McDonald's Corp (MCD.N) gained 1.5 percent to $62.66 after the fast-food chain posted a 3.3 percent increase in global comparable sales. [ID:nN09251657]