The modest number of announced mergers bolstered stocks Monday morning despite the recent signs of slowing economic growth.

Valero Energy (VLO: chart) announced it will buy Premcor (PCO: chart) for $6.9 billion creating the biggest crude oil refiner in North America.

SBC Communications Inc. (SBC: chart) reported its profits slid 53.4% from a year ago on costs associated with the purchase of AT&T Wireless by Cingular. However, SBC beat Wall Street's earnings forecasts by a penny per share, and the company’s stock gained 17 cents to $23.37.

Stronger-than-expected housing data brought relief to the market concerned about an economic slowdown – Boeing (BA: chart) featuring one of the most notable gainers after it won a $6 billion aircraft order from Air Canada's parent company.

Crude futures briefly touched $56 per barrel early Monday, and a barrel of light crude was $55.66, up 27 cents, on the New York Mercantile Exchange.

Treasury prices were little changed, with the 10-year note yield at 4.25%.

In currency trading, the dollar rose against most major currencies. Gold prices fell.

In global trade, Asia ended up and Europe was mixed at midday.

Overseas, Japan's Nikkei stock average gained 0.25%. In afternoon trading, Britain's FTSE 100 was up 0.26%, Germany's DAX increased 0.43%, and France's CAC-40 jumped 0.27%.

In late morning trading, the Dow Jones industrial average climbed 80.91, or 0.8%, to 10,238.62. The Standard & Poor's 500 index climbed 9.33, or 0.8%, at 1,161.45, and the Nasdaq composite index gained 14.68, or 0.8%, to 1,946.87. The Russell 2000 index of smaller companies was up 3.83, or 0.6 percent, at 593.36.


Shares UP:

Apple Computer (AAPL: chart) shares rose 3.7%.
Arch Coal (ACI: chart) shares advanced 2.9%.
Ashland (ASH: chart) shares climbed 4.6%.
Bank of Hawaii (BOH: chart) shares tacked on 2.2%.
Boeing (BA: chart) shares jumped 2.6% .
Ciena Corp. (CIEN: chart) shares increased 4.2%.
International Securities Exchange (ISE: chart) shares gained 3.6%.
Premcor (PCO: chart) shares jumped 21%.
Reebok International (RBK: chart) shares edged 1.8%.
The Sportsman's Guide (SGDE: chart) shares jumped 11%.
VSE Corp. (VSEC: chart) rose 10%.


Shares DOWN:

Shares of Clark Consulting (CLK: chart) slid 25%.
Dow Jones & Co. (DJ: chart) dipped 2.2%.
General Motors (GM: chart) dropped 2.3%.
Isolagen (ILE: chart) shares tumbled 28.4%.
Metals USA (MUSA: chart) shares slid 2.8%.
Silicon Image (SIMG: chart) shares dropped 22%.