M&A Activity Boosts Stocks; Dow GainsTriple Digits

Bulls controlled the market on Wednesday, as merger and acquisition news fueled the upward movement. Investors are also focusing on the Federal Reserve, as more and more investors are beginning to believe that the Fed will cut interest rates in the near future.

Today's strength is attributed to speculation surrounding several potential mergers and acquisitions. TD Ameritrade (AMTD | Quote | Chart | News | PowerRating) and E-trade (ETFC | Quote | Chart | News | PowerRating) are reportedly undergoing discussion to merge the two online brokerage firms (full story). The merger could signal an end to the credit crunch that has affected markets in recent months.

Crude oil future prices for September fell by 0.5% to $69.26 a barrel, which was an 8-week low. Gold futures for December delivery rose 0.4% to $668.70 an ounce.

Around Europe, Germany's DAX rose 1% to 7,500.48, France's CAC 40 added 1.8% to 5,518.17, and Britain's FTSE 100 index also added 1.8% to 6,196.00.

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Darren Wong
Associate Editor
darrenw@tradingmarkets.com

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