By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The S&P 500 popped to an intraday
record and neared the milestone level of 2,000 on Monday, as gains
in U.S. stocks were inspired by merger news and gains from European
markets.
New-home sales data may help set the tone later this morning,
while shares of Burger King Worldwide Inc., Tim Hortons Inc. and
InterMune Inc. surged on deal news.
The S&P 500 (SPX) gained 8 points, or 0.4%, to 1,997 after
scoring an intraday record just above 1,998. The Dow Jones
Industrial Average (DJI) climbed 65 points, or 0.4%, to 17,067,
while the Nasdaq Composite (RIXF) advanced by 24 points, or 0.5%,
to 4,562.
Stocks finished lower on Friday but achieved a third straight up
week, as the S&P 500 pulled back from its record close on
Thursday at 1,992.37.
Data on new home sales for July are due at 10 a.m. Eastern, with
analysts polled by MarketWatch expecting a reading of 430,000. Also
read Economic Preview: Double-sided U.S. economy
Draghi 'whatever it takes' part 2: Inspiration for Monday's
gains came in part from stronger European markets, where the Stoxx
Europe 600 gained on hints of more stimulus from European Central
Bank President Mario Draghi. (Read more: ECB's Draghi softens
emphasis on austerity
http://www.marketwatch.com/story/draghi-ecb-cant-solve-unemployment-by-itself-2014-08-22.)
Draghi's comments, which came after European markets had closed,
and a speech by Federal Reserve Chairwoman Janet Yellen were
brushed aside by Wall Street on Friday. Yellen stayed largely cagey
about the timing of the next rate hike in the U.S.
"[Draghi] was dovish and, to a certain degree, while Yellen and
the rest of the Fed members are preparing for a rate hike next
year, the tone is still that of easy money and so if you have a
flow of easy money coming out of Europe, that is going to help
equity markets here in the States as well," said Peter Cardillo,
chief market economist at Rockwell Global Capital.
Stocks to watch: Shares of Burger King Worldwide Inc.(BKW)
jumped 13% after the company said it is in talks to buy Canadian
coffee-and-doughnut chain Tim Hortons Inc. (THI). The deal would be
set up as a so-called tax inversion, moving Burger King's tax base
to Canada. U.S.-listed shares of Tim Hortons rose 19%. (Read more
about Monday's biggest-moving stocks
http://www.marketwatch.com/story/apple-goldman-are-stocks-to-watch-on-monday-2014-08-24.).
Shares of InterMune Inc. (ITMN) soared 36% after
Switzerland-based Roche Holding AG (RHHBY) said Sunday it will pay
$8.3 billion for the California biotech firm.
Shares of Ann Inc.(ANN) rose 3.1% after activist investor Engine
Capital LP called on the parent of clothing retailer Ann Taylor to
sell itself.
Other markets: Monday is a holiday in the U.K. In Asia, the
Nikkei 225 index rose. The euro (EURUSD) fell against the dollar on
the suggestion of more ECB easing as well as a survey that showed
weaker German business confidence.
MarketWatch's William Watts contributed to this report.
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