US Stocks rally on Merger Monday (ext)

NEW YORK (CNNMoney) -- Investors started the week in high spirits Monday, welcoming several major mergers as signs that Big Business is more bullish about the economy.

At the closing bell, the Dow Jones industrial average (INDU) was up 69 points, or 0.6%; the S&P 500 (SPX) rose 8 points, or 0.6%; and the Nasdaq (COMP) gained 15 points, or 0.5%.

"Investors are coming in with the attitude, if these business leaders are confident enough to buy other companies, then I'm confident enough to buy stocks," said Jack Ablin, chief investment officer with Harris Private Bank in Chicago.

In a speech to more than 200 members of the U.S. Chamber of Commerce Monday, President Obama made the case for ramping up spending on education and infrastructure to promote economic growth. The speech is seen as another sign of the thawing relationship between the administration and business community.

A report by the Federal Reserve showed consumer credit rose more than expected in December, climbing by a seasonally adjusted $6.1 billion in December, after increasing by $2 billion the previous month.

The dollar fell against the British pound and the euro, but rose against the Japanese yen.

Oil for March delivery fell $1.55 to settle at $87.48 a barrel.

Gold futures for April delivery fell 80 cents to settle at $1,348.20 an ounce on the Chicago Mercantile Exchange.