Posted: Monday, August 18th 2014 at 10:04am
US stocks open higher; Europe stocks rebound
By The Associated Press
NEW YORK (AP) -- U.S. stocks opened higher on Monday as investors focused on corporate news. Stocks also got a lift as European markets climbed as investor worries about an escalating conflict in Ukraine eased.
Family Dollar jumped after a rival made a new bid for the company.
KEEPING SCORE: The Standard & Poor's 500 index climbed nine points, or 0.5 percent, to 1,965. The Dow Jones industrial average rose 97 points, or 0.6 percent, to 16,760. The Nasdaq composite climbed 25 points, or 0.6 percent, to 4,489.58.
DOLLAR STORE BID BATTLE: Family Dollar jumped $3.44, or 4.6 percent, to $79.50 after Dollar General offered to buy the discount retailer for $8.95 billion. The bid is higher than the $8.5 billion that Dollar Tree, another discount retailer, made for Family Dollar last month. Dollar General also rose on the news, climbing $5.11, or 8.9 percent, to $62.62. Dollar Tree fell.
IN EUROPE: Germany's DAX jumped 1.4 percent to 9,222.87 and France's CAC 40 added 0.7 percent to 4,225.82. Britain's FTSE 100 rose 0.7 percent to 6,738.67.
UKRAINE: European markets tumbled Friday on reports Ukraine destroyed a Russian military convoy that had crossed its eastern border. That incident, which was denied by Moscow, did not result in a military escalation by Russia - a prospect some investors were worrying about. Meanwhile, Ukrainian army troops penetrated deep inside a city controlled by pro-Russian rebels in eastern Ukraine in what could prove a breakthrough development in the four-month-long conflict, the Ukrainian government said Sunday.
JACKSON HOLE: Central bankers, policy experts and academics from around the world meet at Jackson Hole, Wyoming, for an annual talkfest later this week. Federal Reserve Chair Janet Yellen's speech Friday on the U.S. labor market is expected to "reiterate her views that slack remains substantial, and that the Fed should keep monetary policy accommodative still in order to address that," Mihuzo Bank analysts said in a commentary.
ENERGY: Oil is trading near its lowest since April after fears of supply disruptions from major producer Iraq faded, removing much of the risk premium that built up in May and June. The benchmark U.S. crude futures contract was down $1.21, or 1.25 percent, to $96.11 a barrel in electronic trading on the New York Mercantile Exchange.
BONDS AND CURRENCIES: In government bond trading, prices fell. The yield on the 10-year Treasury note rose to 2.37 percent from 2.34 percent. The euro dropped to $1.3382 from $1.3399 late Friday. The dollar rose to 102.55 yen from 102.36 yen.
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