Summary The Dow Jones Industrial Average rose 27.09 (0.15 percent) to 17,902.51.
NEW YORK (AFP) - US stocks rose Wednesday as a big Royal Dutch Shell acquisition and a large potential pharma deal offset concerns about earnings season and US monetary policy.
The Dow Jones Industrial Average rose 27.09 (0.15 percent) to 17,902.51.
The broad-based S&P 500 rose 5.57 (0.27 percent) to 2,081.90, while the tech-rich Nasdaq Composite Index gained 40.59 (0.83 percent) to 4,950.82.
Equities were lifted by Shell s announcement that it will buy BG Group for $70 billion and by an offer from generic-drug giant Mylan to buy Perrigo for $28.9 billion.
But stocks have also been kept from bigger gains by concerns the upcoming earnings season will be weak.
Michael James, managing director of equity trading at Wedbush Securities, said investors are also anxious that the US Federal Reserve continues to plan to raise interest rates soon.
Minutes from the March meeting showed "several" policy makers favoring a rate hike in June with others seeing a liftoff later in 2015 or in 2016.
"How is an economy with somewhat mixed economic signals going to be able to handle higher rates?" asked James.
Perrigo jumped 18.4 percent, while Mylan surged 14.9 percent following news of the approach by Mylan.
Perrigo said its board would meet to discuss Mylan s takeover proposal and that "a further announcement will be made when appropriate."
Teva Pharmaceutical, which has been seen as another potential dealmaker in a period of pharma sector consolidation, jumped 3.5 percent. Biotech companies Biogen and Celgene rose 1.7 percent and 2.2 percent, respectively.
Alibaba gained 3.9 percent on news it may inject entertainment and media businesses into its struggling movie unit, Alibaba Pictures Group.
Drugstore chain Rite Aid rose 2.1 percent as fourth-quarter earnings jumped to $1.8 billion from $55 million a year ago due to a $1.7 billion tax benefit.
Lions Gate Entertainment, producer and distributor of hit shows like "The Hunger Games: Mockingjay" and "Mad Men", fell 6.6 percent to $31.30 after it announced that an offering of 10 million shares held by investment company MHR Fund would price at $32 per share.
Insurer American International Group rose 0.9 percent following news it won approval from the Federal Aviation Administration to use drones to survey disaster areas.
Bond prices fell. The yield on the 10-year US Treasury rose to 1.90 percent from 1.89 percent Tuesday, while the 30-year rose to 2.53 percent from 2.52 percent Tuesday. Bond prices and yields move inversely.
