By Anora Mahmudova and Wallace Witkowski, MarketWatch

Deal news for AT&T-Time Warner, B/E-Rockwell Collins, Ameritrade and more

U.S. stocks retreated from session highs but remained in positive territory on Monday, getting a lift from a heavy round of merger announcements, including AT&T's planned acquisition of Time Warner.

The S&P 500 gained nearly 10 points, or 0.4%, to 2,151, with eight of the 11 main sectors on the rise. The tech and consumer-staples sectors led the gains, while telecoms and energy sold off. Earlier, the index had been up nearly 14 points.

The benchmark index is about 2% below its all-time high set on Aug 15, having traded in a narrow range for the past two months.

The Dow Jones Industrial Average advanced 80 points, or 0.5%, to 18,226 with shares of Microsoft Corp.(MSFT) Boeing Co.(BA) and Coca-Cola Co.(KO) leading the gainers, up more than 1%. Early in the session, the average had been up by as many as 129 points.

The Nasdaq Composite Index added 46 points, or 0.9%, to 5,304, after being up by nearly 52 points.

"Companies spending their cash on mergers and acquisition is good news for Wall Street. There is also a feeling that the election outcome is mostly certain with Hillary Clinton becoming the next president," said Steve Chiavarone, associate portfolio manager at Federated Global Allocation Fund.

"Investors always pay higher prices for things they know even if they don't like it and pay lower prices for things they don't know," Chiavarone said.

Other analysts noted that technical analysis points to further weakness, however.

"Despite strong earnings reports, U.S. indices increasingly look like they are coming under distribution, particularly the S&P 500, which appears to be completing a head and shoulders top," said Colin Cieszynski, chief market strategist at CMC Markets, in a note. A head and shoulders pattern (http://www.investopedia.com/terms/h/head-shoulders.asp) is a bearish chart formation.

"Part of the headwinds for stocks may be coming from continued gains by the [U.S. dollar], although the dollar index is starting to look exhausted," Cieszynski said.

See: How the almighty dollar will tell you where stocks are going next (http://www.marketwatch.com/story/how-the-almighty-dollar-will-to-you-where-stocks-are-going-next-2016-10-21)

Shares in HBO and CNN parent Time Warner Inc.(TWX) dropped 2.5% following news over the weekend that AT&T Inc.(T) had reached a deal (http://www.marketwatch.com/story/att-reaches-deal-to-buy-time-warner-for-80-billionplus-wall-street-journal-2016-10-22-14103223) to buy the media company for $85 billion. AT&T shares fell 1.9%. The huge buyout looks set to face opposition no matter who wins the U.S. presidential election, with Donald Trump and Hillary Clinton both expressing skepticism (http://www.marketwatch.com/story/both-clinton-trump-wary-of-att-time-warner-merger-2016-10-23).

T-Mobile US Inc.(TMUS) shares rallied 9.4% after posting a better-than-expected profit (http://www.marketwatch.com/story/t-mobile-shares-rise-5-after-company-posts-better-than-expected-q3-profit-2016-10-24).

Shares in B/E Aerospace Inc.(BEAV) jumped nearly 16% after Rockwell Collins Inc.(COL) on Sunday announced a $6.4 billion deal (http://www.marketwatch.com/story/rockwell-collins-in-64-billion-deal-to-buy-be-aerospace-2016-10-23) to unite the two aerospace suppliers. Rockwell Collins was down 6.3%.

Brokerage TD Ameritrade Holding Corp.(AMTD) and Toronto-Dominion Bank(TD.T)(TD.T) confirmed they have agreed to buy (http://www.marketwatch.com/story/td-ameritrade-td-bank-announce-4-billion-scottrade-takeover-2016-10-24) privately owned brokerage Scottrade Financial Services for $4 billion. TD Ameritrade's stock was off by 3.3%.

Insurer Genworth Financial Inc.(GNW) has agreed to sell itself for $2.7 billion () to a Chinese investment firm, China Oceanwide Holdings Group Co. (0715.HK). Genworth was down 8.4%.

Shares of Basic Energy Services Inc. (BAS) plummeted 51% after the operator of oil and gas wells announced an agreement with debtholders as it prepares to file for bankruptcy.

Aduro Biotech Inc.(ADRO) shares fell 5.1% after the company said a patient tested positive for listeria, prompting the Food and Drug Administration to place its clinical trials on partial clinical hold.

In earnings news, Kimberly-Clark Corp.(KMB) dropped 4.5% after its quarterly profit missed forecasts, and VF Corp.(VFC) shares declined 2.6% after the company cut its guidance (http://www.marketwatch.com/story/vf-corp-shares-fall-after-guidance-slashed-2016-10-24).

Read more: Stock market this week looks to Apple, Google earnings for jolt (http://www.marketwatch.com/story/stock-market-looks-to-apple-google-earnings-for-jolt-2016-10-22)

Other markets: Oil futures ended 0.7% lower at $50.52 a barrel following choppy action as Iraq indicated it won't cut production (http://www.marketwatch.com/story/oil-prices-fall-after-iraq-says-it-wont-scale-back-output-2016-10-24). European stocks traded higher (http://www.marketwatch.com/story/european-stocks-advance-with-spanish-shares-energized-by-political-deal-2016-10-24), while Asian markets closed mostly with gains. Gold futures (http://www.marketwatch.com/story/gold-churns-after-weekly-gain-as-dollar-steadies-stocks-point-higher-2016-10-24) settled down 0.3% at $1,263.70 an ounce and a key dollar index traded slightly higher.

See:5 things OPEC needs to do to reach an oil output pact (http://www.marketwatch.com/story/5-things-opec-needs-to-do-to-reach-an-oil-output-pact-2016-10-24)

Economic news: Markit's purchasing managers' manufacturing index climbed to 53.2 in October.

On the Fed front, St. Louis Fed President James Bullard (http://www.marketwatch.com/story/fed-only-needs-to-nudge-up-interest-rates-despite-being-very-close-to-its-targets-bullard-says-2016-10-24)argued that the Fed should raise interest rates slowly in the years ahead as the real rate of interest is expected to remain subdued.

In a speech to the University Club in Chicago on Monday, Chicago Fed President Charles Evans (http://www.marketwatch.com/story/feds-evans-wants-to-tie-pace-of-interest-rate-hikes-to-inflation-performance-2016-10-24) said the central bank should tie the pace of interest rate increases to inflation.

--Victor Reklaitis in London contributed to this report.

(END) Dow Jones Newswires

October 24, 2016 15:07 ET (19:07 GMT)