This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stock Market Today: Juiced by M&A, S&P Smashes Through 2,000

Stocks in this article: ^DJI ^GSPC ^IXIC BKW THI RHHBY ITMN ANN

NEW YORK (TheStreet) -- The S&P 500 smashed its way through 2,000 on Monday after a minor pullback, bolstering the case that the current rally will continue.

Watch the video below for a look at what's moving the markets:


WATCH: More market update videos on TheStreet TV

After a tepid finish on Friday, a raft of deals headlines hit the markets on Monday and inspired heavy gains in the benchmark U.S. stock indices. The broad-based S&P 500 advanced 0.47% to 1,997.65 in the early afternoon hours after trading as a high as 2,001.95. The Dow Jones Industrial Average rose 0.51% to 17,087.43. The Nasdaq added on 0.35% to 4,554.17.

Read More: Roche Investors Should Breathe Easier After InterMune Acquisition

"Money managers are more scared of missing out on profits than the market tanking," said S&P Dow Jones Indices' senior index analyst, Howard Silverblatt.

Major U.S. stock indices finished higher for the week but mostly settled on a muted note on Friday as markets digested as-expected dovish remarks from Federal Reserve Chief Janet Yellen and as European Central Bank President Mario Draghi offered no new surprises on ECB monetary policy, sticking to his usual script of standing ready to adjust policy further. Positive economic news and traders front-running the view that Yellen would stay dovish pushed the broader market to its best weekly return in the last four months.

Read More: Aug. 25 Premarket Briefing: 10 Things You Should Know

Deals news was heating up Monday. Burger King (BKW) is in talks to buy Tim Hortons (THI) , the Canadian coffee-and-doughnut chain, and form a new publicly listed company based in Canada. Burger King surged 20.4% to $32.64 and Tim Hortons soared 21.77% to $76.50.

Roche (RHHBY) announced Sunday an $8.3 billion acquisition of InterMune (ITMN) and its idiopathic pulmonary fibrosis drug Esbriet. InterMune jumped 35.48% to $72.89.

Engine Capital LP, which along with a partner controls more than 1% of Ann (ANN) stock, believes a strategic or private-equity buyer would be willing to pay between $50 and $55 a share for the women's retailer, 47% above Friday's closing price of $37.52 at the high end, the Journal reported, citing people familiar with the matter. Ann shares popped 4.64% to $39.26.

U.S. new home sales in July came in at a less-than-expected seasonally adjusted annual rate of 412,000, the government reported on Monday. The Markit PMI "flash" services index for August signaled that U.S. service sector output rose at its slowest in August since May.

"At this juncture, both the intermediate and longer-term technical picture of the market remain bullish and we have not seen any uptrend violations that would suggest otherwise," said Piper Jaffray technical market strategist Craig Johnson.

Read More: Doughnut-Burgers Shake Up the Landscape

--By Andrea Tse in New York

Follow @AndreaTTse

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs