Stocks climbed on Tuesday as natural resource shares rose alongside commodities and Kraft's bid for Cadbury buoyed hopes that more merger and acquisition activity was on the horizon.
Kraft Foods Inc
M&A activity may signal investors that some shares are considered inexpensive, analysts said. The Kraft bid comes on the heels of Walt Disney Co's
It reinforces that M&A is not dead here by any means, said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York. We'll see more of that as the rest of the year unfolds.
Although Kraft stock fell, other food companies rose, including Hershey Co
The Dow Jones industrial average <.DJI> gained 53.96 points, or 0.57 percent, to 9,495.23. The Standard & Poor's 500 Index <.SPX> rose 8.09 points, or 0.80 percent, to 1,024.49. The Nasdaq Composite Index <.IXIC> put on 12.10 points, or 0.60 percent, to 2,030.88.
Energy shares led the S&P 500 higher as oil futures jumped 5 percent to top $71 a barrel on the back of the weakening dollar. Chevron Corp
Newmont Mining Corp
Health insurance stocks <.HMO> sagged 1 percent ahead of U.S. President Barack Obama's address to Congress on Wednesday. He is expected to outline his proposed revamp of the healthcare system.
The sector had actually begun to stabilize with the belief that there would be gridlock in Washington over the issue. That is still the consensus view, but on the other hand, it's not the final view, said Solaris' Ghriskey.
Shares of General Electric Co
Shares of iPod maker Apple Inc
(Reporting by Leah Schnurr; additional reporting Chuck Mikolajczak; editing by Jeffrey Benkoe)