Wall Street climbed overnight amid better-than-expected confidence among US home builders and a bidding war over Family Dollar Stores.
A report showed the National Association of Home Builders/Wells Fargo Housing Market index, a gauge of home builder confidence, rose to 55 in August from 53 in July, increasing for the third month in a row. It was a welcome sign of optimism in an industry that has struggled to recover.
"As the employment picture brightens, builders are seeing a noticeable increase in the number of serious buyers entering the market," NAHB Chairman Kevin Kelly, a home builder and developer from Wilmington, Delaware, said in a statement. "However, builders still face a number of challenges, including tight credit conditions for borrowers and shortages of finished lots and labour."
The data helped strengthen the greenback, which rose 0.3 per cent against the euro and 0.2 per cent against the yen.
Takeover activity, specifically a bidding war for Family Dollar Stores, also helped drive gains on Wall Street. Shares of Dollar General soared, last up 11.2 per cent, after it offered to buy Family Dollar Stores, outbidding rival Dollar Tree. Shares of Family Dollar Stores jumped 5 per cent. Shares of Dollar Tree were last down 2.1 per cent.