U.S. Stocks Advance on Wrigley Buyout, Verizon Climbs

U.S. stocks rose on Monday for the fourth day after billionaire Warren Buffett financed the $23 billion takeover of Wm. Wrigley Jr. by privately held mars, and investor Kirk Kerkorian bought a stake in Ford Motor Co.

Wrigley, the world's biggest maker of chewing gum, jumped the most since in 28 years after Mars Inc. offered to buy the company for 28 percent more than its closing price last week. Shares of GM rival Ford Motor Co. gained 10 percent, after Kirk Kerkorian's Tracinda said he offered $8.50 per share for up to 20 million of its shares.

The Standard & Poor's 500 Index climbed 3.7 points, or 0.3 percent, to 1,401.54 at 2:22 p.m. in New York. The Dow Jones Industrial Average increased 33.79, or 0.3 percent, to 12,925.65. The Nasdaq Composite Index added 11.46, or 0.5 percent, to2, 434.39.

Investors remained cautious ahead of a two-day meeting by the Federal Reserve, where the central bank is expected to signal it may not be cutting interest rates for much longer.

Kerkorian said he bought 4.7 percent of Ford and plans to purchase more. Ford's shares rose 1.7 percent to $2.42.

Energy sector also gained after Crude-oil futures were up 0.2 percent to $118.78 a barrel after hitting a new high of $119.93 a barrel, boosted by a refinery strike in the United Kingdom and violence in Nigeria.

Exxon, the largest U.S. energy company, rose 33 cents to $92.79. ConocoPhillips, the No. 3, climbed 86 cents to $84.43.

Privately held Mars and Warren Buffett's Berkshire Hathaway said they would buy the chewing-gum maker for about $23 billion, or $80 a share. Wrigley Jr. Co shares jumped 23 percent to $76.95, boosting the consumer sector and the broader market.

Verizon Communications Inc, the second-largest U.S. phone company, said first-quarter profit increased by 9.8 percent as mobile-phone customers spent more on text messages and wireless Internet browsing. The company's shares rose $1.22 to $38.26.