Stocks open higher as investors continue to seek direction on an economic rebound

Stocks rebound after market’s bad week

NEW YORK — Corporate dealmaking is boosting investors’ hopes about a recovery in the economy.

Stocks are up sharply in the early going Monday after Abbott Laboratories said it would buy the pharmaceutical business of Belgian chemicals maker Solvay for $6.6 billion and Xerox Corp. agreed to acquire Affiliated Computer Services for about $6.4 billion.

The takeover moves are a welcome sign that businesses have enough faith in a recovery in the economy to pursue acquisitions.

The market’s follows its worst week since early July. A rise was to be expected after the stock market’s latest rally stalled in response to disappointing housing and manufacturing data. Investors are trying to decide whether it’s wise to commit much money to the market while the economic recovery looks more tentative.

Investors feel they got little direction over the weekend from leaders of the Group of 20 nations, who said they would keep stimulus plans.

In the first hour of trading, the Dow Jones industrial average rose 87.22, or 0.9 percent, to 9,752.41.

The broader Standard & Poor’s 500 index rose 11.10, or 1.1 percent, to 1,055.48, and the Nasdaq composite index rose 27.53, or 1.3 percent, to 2,118.45.