By Kate Gibson
U.S. stocks closed slightly higher Monday after a late-session
reversal led by technology companies and private-school operators
overrode worries that Europe's debt troubles would put the kibosh
on global economic growth.
The Dow Jones Industrial Average (DJI) gained 5.67 points, or
0.1%, to 10,625.83, snapping a two-day losing streak and led by a
1.7% gain in Kraft Foods Inc. (KFT) and a 1.5% rise in AT&T
Inc. (T) shares. Out of 30 components, 15 ended higher.
The blue-chip average had spent nearly 90% of the day lower and
had fallen as much as 184 points.
Consumer staples and telecommunications sectors, both viewed as
defensive plays, also led gainers on the S&P 500 Index (SPX),
which closed up 1.3 points, or 0.1%, to 1,136.94.
But it was a turn higher in consumer-discretionary shares,
including a late-session rally in educational providers Apollo
Group Inc. (APOL) and DeVry Inc. (DV), that helped turn the broader
market around.
The tech sector also closed up higher, lifted by a 5.5% gain in
the shares of Akamai Technologies Inc. (AKAM) and a reversal higher
in Apple Inc. (AAPL) and Hewlett-Packard Co. (HPQ)
Also late in the trading session, the euro stabilized near
$1.24. Earlier the euro (CUR_EURUSD), used by 16 nations in Europe,
declined as low as $1.2233 as the market considered the impact of
budget cuts in countries including Greece and Spain on Europe's
economic recovery. .
"There's plenty of economic data this week, but unless the euro
stabilizes, investors will be too distracted to care," said Marc
Pado, U.S. market strategist at Cantor Fitzgerald.
Stocks had tumbled earlier, dragged down by oil's extended slide
and mounting concerns that Europe's debt troubles would cast a
chill over the European debt rebound.
Energy was the hardest-hit sector on the S&P 500, falling
nearly 1%, led by a 10% drop in the shares of coal-miner Massey
Energy Co. (MEE) Also weighing on energy stocks, oil futures dipped
under $70 and ended at $70.08 a barrel as a stronger U.S. currency
reduced the allure of the dollar-denominated commodity. .
"The market and its players simply don't believe that the plan
for Europe to stop spending and reduce its debt is going to work
without having a significant impact on its economy," said Kevin
Giddis, managing director of fixed-income capital markets at Morgan
Keegan.
Lowe's Cos. (LOW) shares fell 3.1% after the home retailer's
forecast for the second quarter fell short.
Shares of rival Home Depot Inc. (HD) ended 1.1% higher a day
ahead of quarterly results.
Separately, General Motors on Monday reported its first
quarterly profit in three years, with the reversal coming nearly a
year after the auto giant emerged from bankruptcy.
The Nasdaq Composite Index (RIXF) gained 7.4 points, or 0.3%, to
2,354.23.
For every stock on the rise, 1.5 fell on the New York Stock
Exchange, where more than 1.4 billion shares traded hands.
Composite volume topped 6.1 billion.
The National Association of Home Builders on Monday reported a
gain in confidence among U.S. home builders in May, with the trade
group's index hitting a 33-month high. .
The New York Federal Reserve Bank reported its index of
manufacturing activity in the region fell to 19.11 in May from
31.86 last month.