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Stocks Erase Last Week's Losses

Biggest three-day rally in two years.

U.S. stocks had their first three-day rally in six weeks, and the biggest one since March 2009. The market also wiped out the losses incurred after one of the most tumultuous weeks in Wall Street history, and Monday’s gains signal a possible period of stability. The Dow, NASDAQ, and S&P 500 all rose around 2 percent on corporate dealmaking. Utilities, energy, and banking stocks fueled the positive trading. But despite the good showing in the last three sessions, all three indexes are still significantly lower for August, and are on track for their worst month since May 2010. Shares of Motorola Mobility were a big draw after the company’s purchase by Google, gaining nearly 56 percent. The flurry of positive corporate activity managed to overshadow a pessimistic report that showed New York manufacturing on a three-month downswing.