By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Monday built on last
week's advance, helped by deal news and waning Ukraine-Russia
tensions.
A better-than-expected reading on the housing market also
boosted sentiment and kicked off a big week for economic data.
The S&P 500 (SPX) rose 14 points, or 0.7%, to 1,969, adding
to its 1.2% weekly gain last week. The Dow Jones Industrial
Average(DJI) jumped 163 points, or 1%, to 16,826, while the Nasdaq
Composite (RIXF) climbed 38 points, or 0.9%, to 4,503.
The tech-heavy Nasdaq traded as high as 4,509.16 -- a new
intraday high for the year and a level last seen in March 2000.
Yahoo Inc.(YHOO) and Google Inc.(GOOGL) (GOOG) rose 2.4% and 1.9%,
respectively, as tech stocks enjoyed broad gains.
"The political concerns that whipped markets around on Friday
subsided over the weekend with Ukraine and Russia apparently
talking and making some progress," said Colin Cieszynski, chief
market strategist at CMC Markets, in a note. He also emphasized
encouraging news from Iraq, noting that "Kurdish forces regained
control of the key Mosul Dam from ISIS."
Alastair McCaig, market analyst at IG, pointed out the Dow might
regain a big round number.
"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," McCaig said in a note.
Helping out, he said, was the bounce off session lows seen
Friday, when the Dow 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 to its
highest close so far this month.
On the economic front, the National Association of Home
Builders/Wells Fargo Housing Market Index for August came in at 55,
its highest level in seven months. Economists polled by MarketWatch
had expected a reading of 53. Stocks strengthened further after the
housing report.
This 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
Friday at the annual Fed summit in Jackson Hole, Wyo. Yellen is
expected to say there's still slack in the job market, and she
isn't likely to shift the Fed's easy-money stance, said Jan
Hatzius, chief economist at Goldman Sachs, in an interview with
MarketWatch.
Dollar General makes play for Family Dollar
Shares of Dollar General Corp.(DG) rose 11%, faring best in the
S&P 500, after offering to buy rival Family Dollar Stores Inc.
(FDO) in an all-cash deal 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. Family Dollar jumped 5% for the second-best gain in the
S&P 500. (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 after Iraqi Kurds
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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