By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks built on last week's
advance, helped by waning Ukraine-Russia tensions and deal
news.
Investors also looked for a fresh reading on the housing market
due at 10 a.m. Eastern Time, as that report kicks off a big week
for economic news.
The S&P 500 (SPX) rose 10 points, or 0.5%, to 1,965 early
Monday, adding to its 1.2% weekly gain last week. The Dow Jones
Industrial Average(DJI) jumped 93 points, or 0.6%, to 16,756, while
the Nasdaq Composite (RIXF) climbed 25 points, or 0.6%, to
4,490.
"Wall Street is once again coming up to tackle technical
resistance, but with the momentum built up over the last week,
conversations are likely to turn towards when, not if, it can
tackle the 17,000 level again," said Alastair McCaig, market
analyst at IG, in a note.
Helping out, he said, was the bounce off session lows seen
Friday, when the Dow industrials (DJI) recovered from a
triple-digit fall. Also read: Where Soros and other big investors
are putting their money right now
Foreign ministers from Ukraine and Russia met over the weekend,
and an agreement was reached over a convoy of what Russia says is
humanitarian aid. However, no progress was made toward a cease-fire
in Eastern Ukraine. The news pushed the Europe Stoxx 600 near
August highs on Monday.
On the economic front, the NAHB/Wells Fargo Housing Market Index
for August will be released at 10 a.m. Eastern Time, with
economists polled by MarketWatch expecting a reading of 53. The
week also should bring data on housing starts and consumer prices
on Tuesday, as well as minutes from the last Federal Open Market
Committee meeting on Wednesday.
Federal Reserve Chairwoman Janet Yellen will give a speech at
the annual Fed summit in Jackson Hole, Wyo., toward the end of the
week. Yellen is expected to say there's still slack in the job
market, and she's isn't likely to shift the easy-money stance of
the Fed, Jan Hatzius, chief economist at Goldman Sachs, said in an
interview with MarketWatch.
Dollar General makes play for Family Dollar
Shares of Dollar General Corp.(DG) rose 10% after offering to
buy rival Family Dollar Stores Inc. (FDO) in an all-cash proposal
worth $78.50 a share. That's higher than Dollar Tree Inc.'s (DLTR)
cash-and-stock bid in July of $74.50 a share. (Read more about the
day's notable moves in the Movers & Shakers column
http://www.marketwatch.com/story/jinkosolar-urban-outfitters-stocks-to-watch-monday-2014-08-17.)
In commodity markets, oil prices(CLU4) fell on news that Iraqi
Kurds had recaptured a large chunk of the biggest dam in the
country from Islamist militants, with help from U.S. air power.
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