US STOCKS-Markets advance on Caterpillar results, M&A

                                
   * Caterpillar shares jump after Q1 results, outlook
                                
 * Dollar Thrifty surges on Hertz deal
                                
 * Greek minister: Aid will come in time to avoid default
                                
 * Indexes up: Dow 0.3 pct, S&P 0.2 pct, Nasdaq 0.2 pct
                                
 * For up-to-the-minute market news see [STXNEWS/US]
  (Updates to after the open)
                                
 By Ryan Vlastelica
                                
 NEW YORK, April 26 (Reuters) - U.S. stocks rose on Monday
on strong results from Caterpillar and a flurry of
merger-and-acquisition activity, though weakness in financial
shares limited gains.
                                
 Caterpillar Inc <CAT.N>, the heavy machinery maker, also
raised its full-year profit forecast after reporting results,
saying "economic conditions are definitely improving." The
stock gained 5.7 percent to $72.64 and was the top boost on the
Dow. For details, see [ID:nN26212283]
                                
 Whirlpool Corp <WHR.N> surged 12.8 percent to $115.22 after
earnings beat estimates and it raised its full-year profit
view, a bullish sign for consumer spending. [ID:nN26177645]
                                
 Financials fought a headwind, with Citigroup Inc <C.N> down
4.3 percent to $4.64 after the U.S. Treasury said it would
begin selling its huge stake in the bank. The government
acquired 27 percent of the bank after $45 billion in bailouts.
JPMorgan Chase & Co <JPM.N> fell 1.2 percent to $44.43.
[ID:nN26181205]
                                
 The Dow Jones industrial average <.DJI> was up 34.53
points, or 0.31 percent, at 11,238.81. The Standard & Poor's
500 Index <.SPX> rose 1.94 points, or 0.16 percent, at
1,219.22. The Nasdaq Composite Index <.IXIC> added 4.95 points,
or 0.20 percent, at 2,535.10.
                                
 "Caterpillar and Whirlpool were both very strong and
suggest a continuation of the recovery, but the issue with
Citigroup and continued questions about financial regulation
remain a concern," said Kurt Brunner, portfolio manager at
Swarthmore Group in Philadelphia.
                                
 A sweeping overhaul of financial regulations was slated for
a crucial Senate test vote Monday. A Republican leader said all
41 Republican senators would likely vote against launching
floor debate and try instead to negotiate changes.
                                
 Hertz Global Holdings Inc <HTZ.N> agreed to buy Dollar
Thrifty Automotive Group Inc <DTG.N> for about $1.2 billion,
while Charles River Laboratories International <CRL.N>, the
U.S. clinical research company, plans to acquire WuXi
PharmaTech Inc <WX.N> for $1.6 billion. [ID:nSGE63P03V] and
[ID:nSGE63P04G]
                                
 Stifel Financial Corp <SF.N> will acquire rival Thomas
Weisel Partners Group Inc <TWPG.O> for about $300 million in
stock. [ID:nSGE63P0M3]
                                
 Dollar Thrifty gained 9 percent to $42.30, while WuXi
surged 20 percent to $19.87, and Thomas Weisel soared 66
percent to $7.25.
                                
 Greece remained in focus a day after a Greek official said
an aid package would help avert a sovereign debt default,
though signs grew the package may have to be bigger. The
situation in Greece has weighed on equities in recent weeks.
For details, see [ID:nTOPNOW2]
                                
 The Bank of New York Mellon index of leading Greek ADRs
<.BKGR> fell 3 percent.
  (Editing by Jeffrey Benkoe)