Dow up for 7th day as deal activity kicks off week

The resurgent U.S. stock market kicked off the holiday-shortened week by extending last week's gains as investors digested a big rally that has turned stocks positive for the year and reacted to deals in the hotel, paint and data businesses.

The deal activity, which often denotes confidence on the part of the corporate players involved, helped push stocks slightly higher. The Dow ended up 22, a 0.1% gain. The S&P 500 also nudged 0.1% higher, while the Nasdaq composite climbed 0.3%.

Last week, both the Dow Jones industrial average and broader Standard & Poor's 500 stock index erased losses from the worst start to the year ever, finishing the week up 1% and 0.3%, respectively for the year. The gains have been driven by dwindling fears of a U.S. recession, a rebound in oil prices back near $40 a barrel and the Federal Reserve's decision to reduce the number of planned interest rate hikes this year.

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Investors were reacting to a flurry of deals announced Monday, including Starwood Hotels & Resorts Worldwide agreeing to a better revised deal of $13.6 billion from Marriott International that tops a competing bid from China's Anbang Insurance Group. Paint maker Sherwin-Williams also struck a deal to buy competitor Valspar in a cash deal valued at more than $9 billion. And in the data business, information and analytics provider IHS announced it is joining forces with market data firm Markit to form a powerhouse data company.

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Financial markets will be closed for Good Friday in a four-day trading week.

Shares were mixed around the globe. Japan's Nikkei 225 closed down 1.3% while the Shanghai composite in mainland China rallied 2.2%. Stocks in Europe were lower. The broad Stoxx Europe 600 was off 0.3%, while the German DAX was flat and the CAC 40 in Paris was down 0.8%.