Toronto stocks rallied Monday, as investors took in news of a massive acquisition in the mining sector.

The S&P/TSX composite index was up 123.18, or 1.10%, to 11,372.20.

All the 10 TSX main sub-groups were up, with the energy sector up 1.22%.

Crude for August delivery ended up 93¢ at US$71.80 a barrel. Canadian Natural Resources Inc. gained $2.03, or 3.64%, to $57.74.

The U.S.-based Phelps Dodge Corp. offered US$40 billion for Inco Ltd. and Falconbridge Ltd.

Inco moved up $7.03 to $72.28 and Falconbridge gained $2.89 to $58.83.

The materials sector was up 2.26%.

The August futures contract for gold ended down 30¢ at US$587.70 an ounce.

The Canadian dollar moved ahead 0.07 of a cent to US89.07¢.

The S&P/TSX Venture composite index fell 15.73 points, or 0.61%, to 2,574.20.

In New York, the Dow Jones industrial average was up 56.19 points to 11,045.28. The Nasdaq composite index rose 12.20 points to 2,133.67, while the S&P 500 Index gained 6.06 points to 1,250.56.