Stocks finished higher Monday. The Dow climbed 89 points to 25758. The S&P 500 added 6 points to 2857 to put the index less than 0.6% from its record high. The Nasdaq Composite gained 4 points to 7821.
The major averages advanced amid a rebound in commodity prices and an increase in M&A activity. Investor sentiment also saw a boost from trade optimism, as the U.S. and China are reportedly scheduled to discuss trade on Wednesday and Thursday. On the central bank front, market participants appear to be looking ahead to the annual Economic Policy Symposium in Jackson Hole, Wyoming later in the week.
Eight of 11 S&P 500 sectors advanced with Materials and Energy pacing gains. In M&A news, SodaStream surged 9.4% to $142.11 on news PepsiCo will purchase the home-carbonation company for $3.2 billion. In earnings, Estee Lauder increased 3.4% to $140.56 after topping consensus profit and revenue projections. Elsewhere, Nike climbed 3.1% to $82.18 after being the subject of analyst upgrades. Netflix jumped 3.5% to $327.73 after confirming the media services provider was testing ads on its platform.
Breadth was positive on issues by roughly 2:1 on the NYSE and 11:8 on the Nasdaq. Composite NYSE volume was more than 3.6 billion shares.
Treasuries strengthened, pressing yields down along the curve. The yield on the 10-year note fell four basis points to 2.82%, the lowest in six weeks amid a warning of a record amount of short positions in Treasury futures. In commodities, WTI crude added 0.8% to $66.44/barrel. COMEX gold advanced 0.9% to $1186.80/ounce amid a weaker dollar.