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From Briefing.com: 4:30 pm : Broad-based buying not only gave stocks their third straight gain, but helped the S&P 500 close at a session high above 1200.

Stocks started the session sharply higher. Participants showed little regard for an Empire State Manufacturing Index that fell to -7.7, which contrasts with the consensus -0.4 reading. The reading suggests that regional activity contracted further since July, when a -3.8 had been posted.

The positive tone to early trade was partially supported by buying abroad. Asia's major averages all advanced markedly amid news that Japan's economy contracted by 1.3% in the second quarter. The drop in GDP wasn't as bad as what some had feared, though. Europe's bourses staged varied gains ahead of a meeting between officials from France and Germany. The notion that the fiscal and financial challenges facing the region will be addressed helped the euro maintain a lead of more than 1% over the dollar during most of the trading day. The yen surrendered its gain against the greenback.

Early strength attracted additional buyers into the fold, but conviction was tested when the S&P 500 reached the 1200 line. Hesitation there opened the door to some selling, but stocks gradually battled back in afternoon trade. Steady, broad-based buying eventually pushed the broad market measure past the psychologically-significant line to close at a session high. Some traders believe the market's ability to close above 1200 and remain there could go toward helping the stock market stage a longer-term recovery after the steep losses suffered in recent weeks. The S&P 500 is already up more than 100 points, or plus 9%, from the intraday low that it set last Tuesday.

While an improved tone to broad market action typically encourages participants to trade and invest in riskier issues, stodgy and defensive-oriented utilities stocks were today's top performers. As a group, utilities climbed 3.5%, even after many market analysts gave sector members a nod for their steady business models and relatively robust dividend yields during the volatility of the past few weeks.

Energy stocks weren't far behind, however. Collectively, they climbed 3.4%. Drillers were especially strong after Transocean (RIG 57.27, +1.66) announced plans to acquire Norway-based Aker Drilling. Higher oil prices helped the sector, too; the energy component closed pit trade almost 3% higher just shy of $89 per barrel.

Google (GOOG 552.79, -10.98) helped heat up the handset and telecommunications space with a deal of its own. The tech giant announced that it will pay $40 per share for Motorola Mobility (MMI 38.21, +13.74). The offer represents a premium of more than 60% above MMI's closing price last week.

Advancing Sectors: Utilities +3.5%, Energy +3.4%, Financials +3.2%, Telecom +2.3%, Industrials +1.8%, Health Care +1.8%, Tech +1.8%, Materials +1.5%, Consumer Staples +1.4%, Consumer Discretionary +1.4%
Declining Sectors: (None)DJ30 +213.88 NASDAQ +47.22 NQ100 +1.5% R2K +3.0% SP400 +2.7% SP500 +25.68 NASDAQ Adv/Vol/Dec 2132/1.94 bln/499 NYSE Adv/Vol/Dec 2838/1.11 bln/270

4:07PM Agilent beats by $0.04, beats on revs; guides Q4 EPS in-line, revs in-line (A) 37.50 +1.29 : Reports Q3 (Jul) earnings of $0.77 per share, $0.04 better than the Capital IQ Consensus Estimate of $0.73; revenues rose 22.1% year/year to $1.69 bln vs the $1.66 bln consensus. Co issues in-line guidance for Q4, sees EPS of $0.79-0.81 vs. $0.80 Capital IQ Consensus Estimate; sees Q4 revs of $1.74-1.76 bln vs. $1.75 bln Capital IQ Consensus Estimate.

12:55PM Evergreen Solar confirms it filed for chapter 11 reorganization (ESLR) 0.32 -0.10 : In conjunction with the Chapter 11 filing, co entered into a restructuring support agreement with certain holders of more than 70% of the outstanding principal amount of 13% Convertible Senior Secured Notes. The noteholders have agreed to implement the restructuring to be effected through one or more sales of certain of assets including String Ribbon wafer technology business assets. Co will undertake a marketing process and will permit all parties to bid on its assets, as a whole or in groups. The supporting noteholders have agreed to support the Company's restructuring by consenting to cash collateral usage pursuant to a budget during the sale process; and to support the costs of the Bankruptcy Case, including court approval of a plan of reorganization subsequent to the sale process.

7:31AM Motorola Mobility to be acquired by Google (GOOG) for $40/share in cash (MMI) 24.47 : Google (GOOG) and MMI announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion. The transaction was unanimously approved by the boards of directors of both companies. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business. The transaction is expected to close by the end of 2011 or early 2012.

8:44AM Motorola Mobility: Carl Icahn comments on merger of Motorola Mobility and Google (GOOG) (MMI) 24.47 : Carl. C. Icahn commented: "This is a great outcome for ALL shareholders of Motorola Mobility, especially in light of today's markets. In the past three years we have fought long and hard to separate Motorola Mobility from Motorola Solutions, as well as bring Sanjay Jha., as co-CEO. Additionally, we have been strong proponents of the company exploring multiple ways to enhance the value of its patent portfolio. Motorola is activism at its best and we applaud management and the Board for acting so responsibly."

National Semiconductor (NSM) introduced a 16-bit digital-to-analog converter featuring a single-wire interface and 4-to-20 mA current loop drive that simplifies the design of smart transmitters used in industrial two-wire sensor systems.

Varian Semiconductor Equipment Associates (VSEA) announced Friday evening that stockholders voted to approve the merger with Applied Materials (AMAT). The merger was approved by holders of ~52.8 mln shares of Varian's outstanding common stock, and ~ 237K shares voted against the merger.

6:10AM Ascent Solar and TFG Radiant Group announced they have signed a more than $275 mln plus royalties long-term, multi-faceted, strategic partnership (ASTI) 0.75 : The partnership includes investments by TFG Radiant in Ascent and a joint development agreement between TFG Radiant and Ascent to establish manufacturing facilities to be located in East Asia. Under the agreement, TFG Radiant has committed $165 mln for the initial East Asia FAB, bringing the total deal value to about $450 mln plus royalties. TFG Radiant has purchased 6.4 mln shares of Ascent stock at a price of $1.15/share, which represents a premium of 56% relative to the closing price of Ascent stock on August 12. TFG Radiant will receive the right to purchase an additional 9,500,000 shares of Ascent stock, at a price of $1.55 per share. Ascent has agreed to exclusively license its technology for fabrication and distribution of flexible, lightweight copper, indium, gallium, diselenide photovoltaic modules to TFG Radiant for East Asia.

Google (GOOG $550.64 -13.13) and Motorola Mobility (MMI $38.19 +13.72) announced that they have entered into a definitive agreement under which Google will acquire Motorola Mobility for $40.00 per share in cash, or a total of about $12.5 billion. The transaction was unanimously approved by the boards of directors of both companies. Motorola Mobility will remain a licensee of Android and Android will remain open. Google will run Motorola Mobility as a separate business. The transaction is expected to close by the end of 2011 or early 2012.

VanceInfo Tech (VIT $18.92 +1.34) was upgraded to Buy from Hold at Kaufman Bros with a target price of $25 based in valuation and saying they see limited risk to margin outlook in 2011. The firm sees continued top-line momentum led by healthy growth in new verticals and outside of top clients.

VMWare (VMW $93.47 +2.81) was upgraded to Buy from Neutral at Collins Stewart with a target price of $108 saying from a tactical standpoint, their PDR suggests that concerns surrounding VMware's announced licensing/pricing changes have calmed down. VMware quickly adjusted its pricing and entitlements following media/blog furor over its proposed changes, but based on their PDR, they believe the most users were less upset or affected by the changes.

Oracle (ORCL $27.26 -0.13) was moved to Top Picks list at FBR Capital. Firm thinks its diversified software and hardware portfolio positions it well to weather the uncertain economic climate. Additionally, they believe the recent underperformance will reverse as the hardware business should hit an inflection point this year and start posting revenue growth while expanding margins.

Sky-mobi (MOBI $6.76 +0.37) was downgraded to Perform from Outperform at Oppenheimer after its negative pre-announcement on Friday. Management's updated guidance suggests much lower than expected sales growth driven by lower feature phone sales and a difficult operating environment for mobile service providers in China.