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Stocks Push Ahead As Oil Hits $70; Starbucks, Nestle Reveal Pact

U.S. stock indexes pegged strong gains Monday morning with Nvidia (NVDA), Apple (AAPL), Caterpillar (CAT) and Chevron (CVX) among the leaders.

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The Nasdaq and the Dow Jones industrial average rose 0.8% each. The S&P 500 advanced 0.6%, but the small-cap Russell 2000 lagged with a 0.5% gain.

Volume in the stock market today grew on both major exchanges vs. the same time Friday.

Apple had no fresh news but was still enjoying the glow from Warren Buffett’s Q1 buy of 75 million shares. The stock rose 1.4%.

Caterpillar also had no news but still climbed almost 3% as it retook its 50-day moving average line.

Chevron had no company specific news but got a lift from light sweet crude oil’s jump over $70 a barrel. West Texas intermediate crude oil rose 0.8% to $70.30. Chevron popped 2% as it crossed above a 128 entry in a cup-with-handle pattern.

Nvidia Breaks Out

Leading chip designer Nvidia jumped past a 239.35 entry early Monday. The stock is up nearly 4% as it gets ready to report earnings on May 10.

Meanwhile on the deal-making front, Starbucks (SBUX) and Switzerland-based Nestle (NSRGY) announced a marketing pact. Nestle will pay $7.15 billion to Starbucks plus ongoing royalties for the rights to market Starbucks.

According to Bloomberg News, Starbucks will use the $7.15 billion to buy back shares. Starbucks jumped 2.3% in heavy volume after the market’s open but then reversed to a minor gain. Nestle popped 1.3%.

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