Market Snapshot November 9, 2009, 4:50PM EST

Dow Hits 2009 Closing High

Indexes rallied Monday as G-20 nations indicated that government programs to boost world economies would continue. M&A headlines also aided sentiment

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U.S. stocks surged Monday, with the blue-chip Dow Jones industrial average reaching a new closing high for 2009. The basic materials, industrial, and financial sectors led the way after finance ministers from the Group of 20 industrialized nations pledged at a weekend meeting to keep money flowing with economic stimulus plans.

A flood of money and low interest rates are a "magic elixir" for stocks, says S&P MarketScope.

On Monday, the 30-stock Dow Jones industrial average finished higher by 203.52 points, or 2.03%, at 10,226.94, eclipsing its previous 2009 closing high of 10,092.19 on Oct. 19.

The broad Standard & Poor's 500-stock index was up 23.78 points, or 2.22%, at 1,093.08. The tech-heavy Nasdaq composite index gained 41.62 points, or 1.97%, to 2,154.06.

On the New York Stock Exchange, 25 stocks were higher in price for every five that declined. Breadth on the Nasdaq was 18-8 positive. But trading was only moderate, suggesting some skepticism, according to S&P.

Among the skeptics: Ed Yardeni. "I am running into more equity portfolio managers who are fully invested bears. They are fully invested because they've learned not to fight the Fed, which seems committed to keeping the federal funds rate at zero for the foreseeable future," wrote the president of Yardeni Research in a note Monday.

Treasuries ended mixed after a successful $40 billion refunding auction of three-year notes Monday.

The dollar index fell, nearing a 15-month low. There was no specific mention of currencies in the G-20 statement.

Gold futures finished higher, though below the record highs above the $1,100 per ounce level set earlier in Monday's session.

Oil futures were higher on fears that Hurricane Ida could disrupt Gulf of Mexico production.

Benchmark stock indexes in Europe rallied Monday, with London's FTSE 100 index up 1.80%, France's CAC-40 higher by 2.11%, and Germany's DAX index rising 2.40%.

Asian markets finished in the green Monday. Tokyo stocks rose 0.20%, Hong Kong climbed 1.73%, and Shanghai gained 0.36%.

M&A headlines lifted U.S. market sentiment Monday. Kraft Foods (KFT) is reportedly working on a hostile bid for Cadbury of Britain.

Meanwhile, General Electric (GE) and Comcast (CMCSA) agreed to cooperate on a $30 billion joint venture under which Comcast would assume control of GE's 80%-owned NBC Universal unit.

Also, mobile communications services provider Sprint Nextel (S) is planning to invest $1 billion in wireless broadband firm Clearwire (CLWR).

Northrop Grumman (NOC) announced a definitive agreement to sell TASC, Inc., its advisory services business, for $1.65 billion in cash to an investor group led by General Atlantic LLC and affiliates of Kohlberg Kravis Roberts & Co. L.P.

McDonald's (MCD) reported better than expected same-store sales.

RadioShack (S) shares jumped after the electronics retailer said that it will introduce Apple's (AAPL) iPhone 3G and iPhone 3GS in a limited number of company-owned stores in the Dallas-Fort Worth and New York City metropolitan areas beginning later this month. The company expects to introduce iPhone in stores nationwide in 2010.

Shares of Abercrombie & Fitch (ANF) gained after Credit Suisse upgraded its opnion on the stock to outperform from neutral. Goldman Sachs reportedly upgraded A&F to buy.