Spencer Platt/Getty Images By STEVE ROTHWELLNEW YORK -- Corporate deal news gave the U.S. stock market a lift on Monday as a bidding contest erupted for a discount retailer. Stocks also climbed amid reports of diplomatic efforts to broker a cease-fire in the conflict in Ukraine.
Dollar General (DG) jumped after mak! ing a bid for retailer Family Dollar (FDO), a rival discount store. The offer topped a bid made last month by Dollar Tree (DLTR), another discount retailer. Airlines were also among the big gainers as the price of oil slumped.
The stock market is bouncing back after a bout of summer volatility pushed the Standard & Poor's 500 down earlier this month to its lowest level since May. The index is now less than 1 percent below its record close of 1,987 reached on July 24. Investors had become skittish on concerns that the tensions between Russia and Ukraine were escalating.
"Investors are focusing back on earnings and fundamentals and not as worried about some of those geopolitical pressures right now," said Chris Gaffney, a senior market strategist at Everbank Wealth Management.
The Standard & Poor's 500 index (^GPSC) rose 16.68 points, or 0.9 percent, to 1,971.74. The Dow Jones industrial average (^DJI) gained 175.83 points, or 1.1 percent, to 16,838.! 74. The Nasdaq composite (^IXIC) gained 43.39 points, or 1 per! cent, to 4,508.31.
Dollar General was the biggest gainer in the S&P 500. The company's stock rose $6.68, or 11.6 percent, to $64.14 after it made a $8.95 billion bid to buy Family Dollar. That's higher than the $8.5 billion bid that Dollar Tree made for Family Dollar last month.
Sterne Agee recommended buying Dollar General's stock, saying that the company could benefit from significantly higher earnings following the acquisition.
Family Dollar, the target of the bid, also jumped on the news, climbing $3.75, or 5 percent, to $79.81. Dollar Tree fell $1.34, or 2 percent, to $54.26.
Airline stocks were among the gainers as well after the price of oil fell to its lowest level since April as fears of supply disruptions from Iraq eased. Fuel is a big component of airlines' costs.
Southwest Airlines (LUV) rose $1.06, or 4 percent, to $30.82. United Continental climbed $1.83, also 4 percent, to $47.84.
Despite the increased volatility caused! by the tensions in Ukraine and elsewhere, stocks are still an attractive investment, said Dan Curtin, a global investment specialist for JPMorgan Private Bank.
Inflation remains and low and corporate earnings remain strong. Earnings growth in the second quarter was 10.2 percent for companies in the S&P 500, compared to 4.9 percent in the same period a year ago and 3.4 percent in the first quarter, according to data from S&P Capital IQ.
Later this week, investors will focus the Federal Reserve. Policy makers are winding down their economic stimulus and will likely start to raise interest rates at some point next year.
On Wednesday, the Fed will release the minutes from its July policy meeting and on Friday Fed Chair Janet Yellen will give a speech at an annual conference of central bankers, policy experts and academics from around the world at Jackson Hole, Wyoming.
Yellen is expected to reaffirm her position in a speech Friday that slack rem! ains in the labor market and that the Fed will keep monetary policy loo! se to address the problem, said Katie Nixon, chief investment officer for Wealth Management at Northern Trust.
"The Federal Reserve is in no hurry to raise rates," said Nixon. "We expect more of the same and think it will be very supportive to financial markets."
Monster Beverage (MNST) was the biggest decliner in the S&P 500. The stock fell $5.05, or 5 percent, to $88.44 after analysts at Jefferies cut their rating on the stock from "buy" to "hold." Monster surged Friday after Coca-Cola (KO) said it was buying a 16.7 percent stake in the company. The analysts at Jefferies say that Monster's stock may now be fully valued after the gain.
In commodities trading, oil fell close to its lowest price since April after fears of supply disruptions from Iraq faded. That is removing much of the risk premium that had built up in May and June. Benchmark U.S. crude fell 94 cents, or 1 percent, to $96.41 a barrel in New York. It traded above $106 a barrel as recentl! y as June 25.
Prices for U.S. government bonds fell. The yield on the 10-year Treasury note rose to 2.39 percent from 2.34 percent on Friday.
Prices for metals futures ended mixed. Gold fell $6.90 to $1,299.30 an ounce, silver rose 11 cents to $19.64 an ounce and copper was little changed at $3.11 a pound.
What to Watch Tuesday:
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These days, many schools list the supplies they expect you buy on their website. That will help you get organized, and keep you from having to guess what the teacher expects your child to have. Use the list to stay disciplined and avoid making impulse buys. Also, don't forget to budget for after-school activities, athletic fees and equipment.
1. Make a budget -
Make sure you control the expectations game with your kids before your get to the stores -- otherwise your purchases can easily get out of hand. Have that parent-child chat in advance, and determine which items are necessities and which are go on the "wish list." Doing this could reduce some in-store stress when your offspring starting dumping items into the shopping cart.
2. Talk to your kids -
Before hitting the stores or logging in online, do an inventory of your own shelves. You'll probably find lots of notebooks, binders and other items that have plenty of life left in them.
3. Shop at home first -
Just as with holiday shopping, all the major retailers are trying to lure you in with "doorbuster" specials. Those loss-leaders can be real bargains, if you avoid loading up on all of the other items that are not on sale. You might find great deals on pens at CVS (CVS) or Walgreens (WAG), for example, but most of their other back-to-school items are priced considerably higher than you'll find at big box retailers such as Walmart (WMT) and Target (TGT). Some sale items are incredibly cheap, such as notebooks for just 17 cents.
4. Buy the doorbusters -- and then head for the door -
It pays to wait for the end of August when summer clearance sales and back-to-school promotions converge. Labor Day sales are among the best times to buy electronics, including laptops. The best shopping days of this season will run from Aug. 27 through Sept. 1 (Labor Day).
5. Take advantage of the calendar -
If you have the time and the inclination to spread out your shopping over several weeks and by going to more than one store or one website, you can save a bundle. Follow the ads online and in newspaper circulars from week to week, and jump into action when you spot a really good deal.
6. Take your time -
If you don't have the time or energy to hop from one place to another to take advantage of all of the best sale days, go to Walmart or Target and get just about everything you need at reasonable prices -- either in the store or online. Walmart offers 30 percent more back-to-school items online this year compared to last year. Both big-box chains are offering price matching programs, some of which you can still use after making your purchase. At Walmart.com, you can enter an ID code listed on the in-store receipt and get a gift card rebate if the company's prices were more expensive than advertised prices at competitors.
7. Shop in one spot -
Sixteen states are offering a back-to-school sales tax break this year, down from 18 that did so in 2013. The savings of between 3 percent and 7 percent usually applies to clothing, footwear and some big-ticket items such as computers. However, don't be lured into buying something that you wouldn't ordinarily purchase just because you can save on the taxes.
8. Watch for tax holidays -
Parents are spending just as much, if not more, online this back-to-school season as they are in brick-and-mortar stores. Amazon (AMZN), of course, is the elephant in the online room. A recent survey by Savings.com found that Amazon offered competitive prices, especially on items that cost less than $10. One caveat: Many free shipping offers are tied to a certain level of spending. Don't let those free shipping offers force you to spend more than you planned.
9. Shop online -
It seems like almost every day, new apps arrive that are designed to help you find the best deals, compare in-store prices and make shopping lists -- and they're free. Shop Savvy Barcode Scanner allows you scan an item's barcode and find prices from other stores and online sites. Other apps to check out include Favado, The Find, ShopAdvisor, SaleSorter and PriceGrabber. Some stores also offer their own app, such as Target's Cartwheel. All are available on iOS and Android.
10. Use comparison-shopping apps -
No, your sixth grader probably won't fit into most of his or her fifth-grade wardrobe, but some of those hand-me-downs from their older siblings will still be looking good. And don't be afraid to ask friends or relatives what they have that their kids have outgrown. Also, when you go through your own stuff, you may find bushel or two of clothes you can sell at the local consignment store. It takes limited effort on your part, and when your items sell, you pocket 30 percent to 50 percent of the sale price.
11. Check your closets -- and other people's -
No need to rush: You don't have to buy an entire school wardrobe before the start of first period. Buy up summer sale items between now and Labor Day, but wait until the end of September or early October to shop for fall clothes. You can not only capture sale prices on both, but your kids will have time to see what their friends are wearing, and you'll avoid buying some items that they'll never be caught dead wearing.
12. Wait until after school starts -
You'll always want the option of returning an item. You may find that your kid doesn't need it after all, or that the blouse doesn't look as good at home as it did in the store. Know how long you have to return an item to a given store, and keep your receipts organized. Also, some stores allow shoppers to bring an item back and get a price-differential refund if it gets marked down after you left the store.
13. Know about return policies -
We want our kids to dress as well as their friends do, and to have the newest and fastest electronics. Know when it's OK to skip it: You may find that the latest laptops cost hundreds of dollars more than the just-previous versions, but that you don't really need all of the newest bells and whistles. Also, buying a refurbished laptop could save you a bundle.
14. Avoid peer pressure -
Buying a dozen boxes of No. 2 pencils can be cost-efficient -- if you run an office. If not, you're over-buying just to save a few pennies per item, but in the end you're wasting money. Don't buy in bulk just for the sake of deal.
15. Don't bulk up on everything -
This is good advice 365 days a year. Don't put anything on a credit card if you aren't certain you'll be able to pay it off in full when the bill comes. Any savings you reaped by being a smart shopper will disappear into the APR. Also, avoid the temptation to sign up for store credit cards, unless they offer you rewards well beyond the initial purchase discount.
16. Use credit wisely -
Staples (SPLS) may not have the best price on everything, but it has a fantastic offer right now -- a 110 percent price match guarantee. It will match the advertised price of any in-store or online competitor, and give you back 10 percent more. This offer is good for 14 days from the date of purchase.Old Navy (GPS) has jeans starting as low as $8 and T-shirts starting at just $4.
Dollar stores offer some of the best deals around, especially if you search for their coupons.
Kohl's (KSS) also offers lots of coupons and usually marks down prices on the second and fourth Saturday of each month.
17. Find the best deals - More from DailyFinance:
Source : http://www.dailyfinance.com/2014/08/18/market-wrap-stocks-rise-dollar-general-jumps-after-bid-for-riv/
