Bob Pisani is out this week - this post was written by CNBC producer Robert Hum
It’s back to school for the kids, and it’s back to work for the traders.
Stocks are set to rise to kick off the holiday-shortened work week following a solid two-day rally overseas in Asia and Europe. While U.S. markets were closed for the Labor Day holiday yesterday, Hong Kong’s Hang Seng index ended its session today at a new 52-week high, while Australia’s All Ordinaries and the U.K.’s FTSE 100 are at their highest levels since October.
Fueling the rally pre-open this morning: a modest rise in commodity stocks, which are all up 3 percent to 6 percent in early trading. This comes as the U.S. Dollar Index falls to its lowest levels since the end of last September, sending hard commodities up 2 percent to 6 percent this morning. Highlighting the commodity move this morning is gold, which is trading above $1,000 an ounce for the first time since February. If the bullion’s current levels hold by the end of its session today, it will be set to close at a new all-time high.
Not sweet enough! That’s what Cadbury’s board of directors is telling Kraft Foods about its surprise bid for the U.K. chocolate maker. Over the long weekend, Kraft made a $16.7 billion offer for Cadbury in a cash and stock deal that represents a 31 percent premium for Cadbury shares. However, Cadbury’s board rejects the offer, telling Kraft that the current offer “fundamentally undervalues” the company.