Merger & acquisition activity gave stocks a lift on Tuesday after UK confectionary maker Cadbury rejected a $16.7 billion bid from Kraft Foods. Biogen's $350 million takeover bid for Facet Biotech was also rejected. Consumer credit could only pressure the market briefly despite showing gripping constriction and offering a warning to policy makers that stimulus efforts are not boosting consumer liquidity. The S&P gained 0.9 percent to 1,025.
Gold headlined the session, popping over $1,000 to $1,007 before settling at $995. Inflationary concerns, tied to economic recovery and high government debt, continue to drive up investment demand for gold as well as investment demand for other commodities including oil which jumped $3 to $71.25. Inflationary concerns continue to hurt the dollar with the dollar index hitting a 12-month low at 77.26 for a 1 percent drop.