Stocks rise as crude oil at a 2-year high

Trader Frank O'Connell works on the floor of the New York Stock Exchange.

NEW YORK - U.S. stocks made modest gains and set more records Monday as upheaval in oil-rich Saudi Arabia sent crude prices to two-year highs. Chipmakers and media companies climbed on deal reports while phone and household goods companies sank.

U.S. crude oil reached its highest price since mid-2015 after dozens of Saudi princes and senior officials and businessmen were arrested as part of a purported corruption investigation. Saudi Arabia is the world's largest exporter of oil, and investors wondered if the tumult could constrict oil supplies and drive prices higher. Energy companies jumped, with drilling companies making some of the biggest gains.

Chipmakers surged after Broadcom offered to buy competitor Qualcomm for $103 billion, which would be the largest technology acquisition ever if it's completed. The Standard & Poor's 500 index rose 3.29 points, or 0.1 percent, to 2,591.13. The Dow Jones industrial average added 9.23 points, or less than 0.1 percent, to 23,548.42. The Nasdaq composite gained 22 points, or 0.3 percent, to 6,786.44. The Russell 2000 index of smaller-company stocks picked up 3.05 points, or 0.2 percent, to 1,497.96.

Broadcom's unsolicited offer values Qualcomm at $70 a share, and it would combine two companies that control about 40 percent of the market for chips used in cellphones.

Qualcomm added 71 cents, or 1.1 percent, to $62.52 and Broadcom rose $3.89, or 1.4 percent, to $277.52. Qualcomm stock jumped 12.7 percent Friday on reports Broadcom was going to make an offer. Apple also rose $1.75, or 1 percent, to $174.25 as technology companies rose for the eight straight day.

That wasn't the only potential chip tie-up in the news. After the Wall Street Journal reported that Marvell Technologies was in talks to buy Cavium, Cavium advanced $8.16, or 12 percent, to $76.43 and Marvell rose $1.69, or 9.1 percent, to $20.20.

Sprint fell 77 cents, or 11.5 percent, to $5.90 and T-Mobile sank $3.37, or 5.7 percent, to $55.54 after they dashed investors' hopes they would finally combine.

U.S. crude oil surged $1.71, or 3.1 percent, to $57.35 a barrel in New York. Brent crude, the international standard, climbed $2.20, or 3.5 percent, to $64.27 a barrel in London.

With international tumult in the news, investors bought gold and government bonds. Gold rose $12.40, or 1 percent, to $1,281.60 an ounce. Silver jumped 40 cents to $17.24 an ounce. Copper climbed 4 cents to $3.16 a pound.

The yield on the 10-year Treasury note slipped to 2.32 percent from 2.33 percent.

The dollar dipped to 113.77 yen from 114.16 yen. The euro rose to $1.1606 from $1.1608.