U.S. stocks, Dow Jones, S&P 500, Nasdaq Composite index rose dec 5 2011

U.S. stocks, Dow Jones, S&P 500, Nasdaq Composite index rose dec 5 2011 : U.S. stocks were sharply higher on Monday, as Franco-German talks on a plan for stricter euro zone budget discipline added to hopes for progress in tackling the region’s sovereign debt crisis. During early U.S. trade, the Dow Jones Industrial Average jumped 1.27%, the S&P 500 index soared 1.42%, while the Nasdaq Composite index climbed 1.28%.

German Chancellor Angela Merkel and French President Nicolas Sarkozy said that they had agreed on a joint plan to impose strict fiscal rules to all euro zone countries in the form of a new European treaty due to be concluded by March 2012.

Market sentiment also strengthened earlier after Italian Prime Minister Mario Monti unveiled a EUR30 billion package of austerity measures, which includes raising taxes and increasing the pension age.

U.S. lenders were broadly higher, shadowing their European counterparts as shares in Citigroup surged 5.82% and JP Morgan jumped 4.61%, while Goldman Sachs and Bank of America climbed 4.01% and 3.55% respectively.

Citigroup was reportedly discussing a plan to shuffle Asian managers to reassure Japanese regulators as they prepare to sanction the bank for alleged lapses in disclosure related to the sale of financial products.

The energy sector also contributed to gains with oil rig operator Transocean Ltd. soaring 4.05% after being raised to “outperform” from “market perform” by BMO Capital Markets.

Chesapeake Energy Corp. added 1.14% after selling to a group of private investors USD750 million worth of preferred shares in a subsidiary created to help fund development of the oil and natural-gas field.

Meanwhile, MetLife Inc., the largest U.S. life insurer, rallied 3.31% after saying earnings will probably rise in 2012.

On the downside, the internet and telecommunication sectors posted strong losses as shares in Research in Motion tumbled 1.97% and Amazon declined 0.71% while Qualcomm saw shares drop 0.83%.

Across the Atlantic, European stock markets were sharply higher. The EURO STOXX 50 jumped 1.41%, France’s CAC 40 climbed 1.16%, Germany's DAX advanced 0.83%, while Britain's FTSE 100 rose 0.55%.

During the Asian trading session, Hong Kong's Hang Seng Index climbed 0.65%, while Japan’s Nikkei 225 Index gained 0.6%.

Also Monday, the U.S. Institute for Supply Management’s said that non-manufacturing activity fell unexpectedly in November. A separate report showed that U.S. factory orders declined more-than-expected in October. For the latest updates on the stock market, visit Stock Market Today For the latest updates PRESS CTR + D or visit Stock Market news Today

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