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Stocks rallied to finish higher in thin trading Monday as fears over Greece's debt crisis subsided and investors snapped up beaten-down stocks.
The
Dow Jones Industrial Average gained 76.02 points, or 0.63 percent, to close at 12080.38, led by
DuPont [DD Loading... () ] and
Caterpillar [CAT Loading... ()
]
. But the blue-chip index is still on track for the worst month since last August. The
S&P 500 6.86 points, or 0.54 percent, to end at 1,278.36. The tech-heavy
Nasdaq climbed 13.18 points, or 0.50 percent, to finish at 2629.66. Despite the day's rally, however, stocks are still on pace for the first losing quarter since the second quarter of 2010.
The CBOE Volatility Index, widely considered the best gauge of fear in the market, tumbled to end near 20. Among the key S&P sectors,
health care and
consumer discretionary were the top gainers, while
banks declined. Volume was light with the consolidated tape of the NYSE at 2.97 billion shares, while just 786 million shares changed hands on the floor. “There will be more market participation when there’s confidence,” said Brian Battle, vice president of trading at Performance Trust Capital Partners, citing concerns over jobs, housing and the growing U.S. debt. The euro zone finance ministers gave
Greece a two-week deadline to approve tighter austerity measures in return for more emergency loans. "The approval of the Greek parliament is absolutely essential and it will have to arrive in a timely fashion so we can take a decision on July 3,'' said Jean-Claude Juncker, head of the EU finance ministers. Meanwhile, Moody's placed ratings of Italian Government-related issuers on review for a possible downgrade. The news comes after the firm said Friday it could downgrade Italy's rating.The
euro traded lower against the U.S. dollar, while
gold
gained $2.90 to end at $1,542 an ounce. Major financials were trading lower after
Citigroup cut its price targets on
Bank of America [BAC Loading... () ] ,
Goldman Sachs [GS Loading... () ] and
Morgan Stanley [MS Loading... () ] . Citi said tough regulatory environments and a dip in commodity trading volumes could hurt earnings for some of the largest banks. Meanwhile, KBW raised its price target on
Discover Financial [DFS Loading... () ] to $30 from $26.
PNC Financial [PNC Loading... ()
] has reportedly agreed to buy the
Royal Bank of Canada’s retail operations
for $3.45 billion.
Research In Motion [RIMM Loading... () ] continued to tumble after Bernstein cut its rating on the BlackBerry maker to "underperform" from "market perform." (
Watch: RIM—A Takeover Target?) Rival
Nokia [NOK Loading... () ] also declined.
Apple [AAPL Loading... ()
] slipped for a third day,
trading below its 200-day moving average. "Apple is still one of the cheapest growth stocks that we have," said trader Stephen Weiss. "[However,] don’t catch a falling knife...wait for it to bottom.”Meanwhile, health care stocks were mostly higher, helped by gains in the insurers.
WellPoint [WLP Loading... () ] ,
Aetna [AET Loading... () ] and
Humana [HUM Loading... () ] were all up more than 3 percent each. Jim Albaugh, President and CEO of
Boeing [BA Loading... ()
] Commercial Airplanes told CNBC Boeing is evaluating options for its 777 range of airplanes, considering whether to
upgrade the 777 or build a completely new model.
Wal-Mart [WMT Loading... () ] gained after the
Supreme Court ruled for the retail giant in the largest sex-discrimination lawsuit in history.
General Electric [GE Loading... ()
]
reached a tentative four-year agreement with trade unions over job packages.
Ford [F Loading... () ] is spending $1 billion to develop a new generation of vehicles for its struggling Lincoln brand, the Wall Street Journal reported.
Oil prices were mixed, but drillers such as
Transocean [RIG Loading... () ] and
Nabors [NBR Loading... () ] declined. Nabors also warned that its pressure pumping and international businesses have been weaker than it expected.
U.S. light, sweet crude reversed its losses, gaining 25 cents to settle at $93.26 a barrel, while
London Brent crude fell $1.52 to settle at $111.69. Meanwhile, Goldman Sachs upgraded a handful of coal stocks, citing rising oil prices. The brokerage upgraded
Patriot Coal [PCX Loading... () ] to "conviction buy" from "neutral,"
Peabody Energy [BTU Loading... () ] to "buy" from "neutral" and
Consol Energy [CNX Loading... () ] to "neutral" from "sell."And the
Dow Transport index rallied as lower oil will eventually translate into cheaper gasoline prices.
Harbin Electric [HRBN Loading... ()
] skyrocketed after the Chinese electric motor maker
agreed to be taken private in a deal that values the firm at $750 million.Meanwhile,
Dangdang [DANG Loading... () ] jumped after co-founder Peggy Yu Yu
told CNBC that the Chinese e-commerce firm is seeing "very fast growth."Investors will be focusing on the Federal Reserve's policy statement, due Wednesday, and will also closely monitor Bernanke's news conference shortly after the announcement. The Fed is expected to restate its commitment to hold interest rates near zero for an extended period amid fresh signs the U.S. recovery has lost momentum. (
Read: How to Trade the FOMC Meeting)
European shares fell as a delay on further loans for Greece intensified worries about the euro zone debt crisis.
Coming Up This Week: TUESDAY: Existing home sales, FOMC meeting begins; Earnings from Walgreens, Barnes & Noble, Adobe
WEDNESDAY: Weekly mortgage apps, oil inventories, FOMC meeting announcement; Earnings from FedEx, Bed Bath & Beyond
THURSDAY: Weekly jobless claims, new home sales, money supply, Yahoo shareholders meeting; Earnings from ConAgra, Discover Financial, Oracle
FRIDAY: Durable goods, GDP, corporate profits
More on CNBC.com![]()
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