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US stocks open sharply higher

Monday - 12/16/2013, 10:15am  ET

FILE - In this Thursday, Dec. 12, 2013, photo, traders work on the floor of the New York Stock Exchange. European markets brushed aside earlier weakness in Asia Monday, Dec. 16, 2013, as traders took in stride the prospect of a stimulus reduction from the U.S. Federal Reserve later this week. (AP Photo/Richard Drew, File)

The Associated Press

NEW YORK (AP) -- The stock market is opening sharply higher after a pair of multibillion-dollar deals and signs of strength in U.S. manufacturing.

The Dow Jones industrial average jumped 164 points to 15,920 shortly after the market opened Monday. The Standard & Poor's 500 index rose 13 points to 1,789. The Nasdaq rose 29 points to 4,030.

LSI Corp. rose $3.04, or 38 percent, to $10.94 after chipmaker Avago Technologies said it was buying the company for $6.6 billion.

AIG was up $1.10, or 2 percent, to $50.84, after it announced the sale of its aircraft leasing business for about $5.4 billion.

U.S. factories increased output in November for the fourth straight month, led by a surge in auto production. The gains show manufacturing is strengthening and could help boost economic growth.

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