Stocks get a bounce

NEW YORK (CNNMoney.com) -- Stocks bounced Monday morning, recovering after last week's drubbing as investors eyed a slew of corporate deals and geared up for Tuesday's congressional elections.

The Dow Jones industrial average (up 31.54 to 12,017.58, Charts) and the broader S&P 500 (up 4.61 to 1,368.91, Charts) index both gained around 0.3 percent in the early going. The tech-fueled Nasdaq composite (up 12.99 to 2,343.78, Charts) added 0.6 percent.

Stocks slipped Friday, at the end of a tough week, after upbeat reads on the labor market and the services sector sparked bets that the economy is stronger than had been thought and the Federal Reserve won't be able to cut interest rates soon.

Last week's declines followed an unusually strong October on Wall Street in which the Dow industrials closed at record highs in 13 of 18 sessions and the S&P 500 and Nasdaq hit more than 5-1/2 year highs.

On Monday, investors seemed willing to resume the upward trend, thanks in part to a number of deals.

Among the highlights: Four Seasons Hotels (up $19.66 to $83.53, Charts) has received a $3.7 billion management-led buyout offer, sending shares up 30 percent at the open.

Abbott Laboratories (down $0.33 to $47.31, Charts) said it will buy Kos Pharmaceuticals (up $26.87 to $76.96, Charts) for $3.7 billion. Abbott shares declined modestly, while Kos shares jumped 17 percent.

U.S. light crude oil for December delivery gained 10 cents to $59.24 a barrel in electronic trading.

Treasury prices slipped, lifting the yield on the benchmark 10-year note to 4.74 percent from 4.72 percent late Friday. Bond prices and yields move in opposite directions.

In currency trading, the dollar gained versus the euro and the yen.

More on investing

More on the markets

Gearing up for gridlock