NEW YORK (AP) - Stocks started the week with big gains Monday on a major telecommunications deal and signs that Japan's nuclear crisis was stabilizing. The Dow Jones industrial average closed above 12,000 for the first time since a nuclear power plant in Japan failed following a massive earthquake and tsunami.
In the U.S., AT&T Inc. said it would buy rival T-Mobile USA for $39 billion, creating the largest U.S. cellphone company. Charles Schwab Corp. said it would buy online brokerage services provider OptionsXpress for $1 billion. The deals raised hopes that more corporate buyouts could be on the way as businesses become more confident in the economic recovery.
Energy stocks led the market higher after oil prices climbed back above $103 per barrel. Schlumberger Ltd., which helps companies drill for oil and gas, rose 4.4 percent to $89.73. ConocoPhillips rose 2.9 percent to $77.55.
Worries about Japan's stricken nuclear reactors eased after the Nuclear Regulatory Commission said the situation at the Fukushima Dai-ichi plant appeared to be stabilizing. Containment at three of the plant's six reactors was intact, the commission said.
Five stocks rose for every one that fell on the New York Stock Exchange. Consolidated volume came to 4.5 billion shares.
Oil rises on concerns
Oil prices climbed Monday as energy experts warned that Libya's oil exports could be off the world market longer than expected.
Traders also fretted about other uprisings in the Middle East and how much they could affect production from OPEC heavyweights, Saudi Arabia and Iran.
Benchmark West Texas crude for May delivery gained $1.24 to settle at $103.09 per barrel on the New York Mercantile Exchange.
In the U.S., gas pump prices leveled off after jumping to the highest levels in history for this time of year. Retail prices ticked higher by a tenth of a penny on Monday to a national average of $3.549 per gallon.
Home sales fell in February
Fewer Americans bought previously occupied homes in February and those who did purchased them at steep discounts. The weak sales and rise in foreclosures pushed home prices down to their lowest level in nearly 9 years.
The National Association of Realtors said Monday that sales of previously occupied homes fell last month to a seasonally adjusted annual rate of 4.88 million. That's down 9.6 percent from 5.4 million in January. The pace is far below the 6 million homes a year that economists say represents a healthy market.