* S&P 500 hits record in broad U.S. equity rally; German
* Oil gains on G20 global growth outlook
* Dollar rebounds against euro, slips against yen
By Herbert Lash
NEW YORK, Feb 24 Stocks on Wall Street surged to
an all-time high on Monday, helping to lift global equities
markets on optimism over merger activity, while crude oil prices
rose on expectations of revived growth in the demand for oil.
U.S. stocks advanced in a broad rally, pushing the benchmark
S&P 500 to a record high. A surprise improvement in German
business morale added to optimism over the euro zone's recovery,
helping to boost European shares.
Recent U.S. data that came in below expectations had fueled
concern that equity markets were over-valued. But that was
offset by a string of merger and acquisition activity.
Radio frequency chipmaker RF Micro Devices Inc
agreed to buy peer TriQuint Semiconductor Inc for about
$1.6 billion, and Men's Wearhouse Inc raised its offer
for Jos. A. Bank Clothiers Inc by more than 10 percent.
Billionaire investor Carl Icahn's renewed call for the
spinoff of eBay Inc's fast-growing PayPal division
added to the merger frenzy.
"The M&A news still seems to be moving forward between the
RF Micro deal, the Jos. A Bank deal and Carl Icahn's pushing on
eBay," said Rick Meckler, president of hedge fund LibertyView
Capital Management LLC in Jersey City, New Jersey.
"For some investors that suggests the markets may not be
over-valued if it allows for this kind of activity," he said.
Shares of RF climbed 16 percent to $6.74, while TriQuint
gained 21.7 percent to $11.23. Men's Wearhouse rose 8.3 percent
to $48.86, while Jos. A. Bank was up 8.7 percent at $59.83.
Shares of eBay rose 3.2 percent to $56.31.
Reduced tensions in Ukraine, where new authorities issued an
arrest warrant for mass murder against ousted President Viktor
Yanukovich, also boosted sentiment, Meckler said.
MSCI's all-country equity index rose 0.57
percent, while the FTSEurofirst 300 index of top
European shares rose 0.33 percent to 1,347.50.
German business morale rose in February to its highest since
July 2011, Munich-based Ifo think tank's business climate index
showed, suggesting Europe's largest economy will grow more
quickly in the first quarter after expanding only modestly last
On Wall Street, the Dow Jones industrial average rose
141.25 points, or 0.88 percent, to 16,244.55. The Standard &
Poor's 500 Index was up 17.34 points, or 0.94 percent, at
1,853.59. The Nasdaq Composite Index was up 39.50
points, or 0.93 percent, at 4,302.91.
The Nasdaq punched to a new high for the year and to highs
last seen almost 14 years ago, before the technology bubble
U.S. Treasury prices fell. The 10-year note fell
3/32 in price to yield 2.7427 percent.
German Bund futures fell to the day's low on the
German sentiment indicator. The Bund traded down 22 ticks at
Brent crude oil steadied around $110 a barrel, resisting
sharp declines in some other risk assets on news of further
supply losses in Africa and expectations of revived oil demand
Oil markets found support from a fairly upbeat meeting of
officials from the world's top economies in Sydney, who
announced a target of generating more than $2 trillion in
additional output over five years while creating millions of new
Brent crude was up 50 cents at $110.35 a barrel,
after settling higher for a second straight week. U.S. oil
was up 57 cents to $102.77 a barrel.
Gold hit its highest in nearly four months on worries over
Chinese growth and the pace of the U.S. recovery, but later
Gold futures for April delivery were up 1 percent at
$1,337.20 an ounce.
The euro pared gains against the dollar to retreat,
falling 0.11 percent to 1.3722.
The dollar index rose 0.08 percent to 80.173, while
against the yen, the dollar was 0.04 percent lower at