The ring makes him invisible.
The dagger is an elven blade and glows in the presence of orcs and goblins.
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This is a bit unclear as one could argue that Gandalf guessed that Bilbo had a magic ring almost the moment he heard the tale of Gollum after Bilbo escapes. We do not know when exactly he begins to suspect that the ring could be the ONE ring, but he finds out for certain in Fellowship of the Ring after testing it in fire.
He got lost in the mountain in gollums cave and then he found gollum and they had a riddle contest and then he found it on the ground and he asked what is in my pocket and then he put the ring on and ran to a door and escaped out of the mountains
Apparently by accident when The Ring slips on his finger and Gollum runs right past him as if he could not see him. Gandalf later speculates that The Ring may have deliberately put itself on Bilbo's finger to allow him to escape so The Ring could get out of the mountains and get a chance to return to Sauron.
saved them from the spiders
Gandalf goes to Minas Tirith in Gondor to research the One Ring. There Lord Denethor grudgingly allowed Gandalf to search among his hoarded scrolls and books. And there he found the description of the One Ring written by Isildur.
He made him leave the Shire with Frodo.
Frodo did volunteer. It was Gandalf's belief that the ring chose him, and possibly knew it would destroy him to take it away. Also, Gandalf had a high regard for Hobbits, and that they could resist it's temptation longer than any of the other races, because of their lack of desire for power.
Bilbo's surname is Baggins.