Stocks Rally Ahead Of Q2 Earnings

U.S. stocks closed higher for a third day in a row, advancing ahead of Alcoa Inc., which kicked off the Q2 earnings season shortly after Monday's closing bell. Nearly all industry sectors in the S&P 500 finished with gains, led by shares of utility companies following hotter-than-usual weather throughout much of the country driving up electricity usage. Weather also contributed to a big rise for natural gas while gold and other metals also rallied in commodities trade.

It was a light day for economic data, with little for investors to chew on before Wednesday when minutes from the June 18-19 Federal Open Market Committee meeting are released and the markets can parse those remarks for additional clues as to when the central bank may begin tapering its bond-buying stimulus efforts.

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Alcoa (AA) finished with a 1% gain ahead of the aluminum manufacturer taking its traditional role of the first S&P 500 component company to report its quarterly earnings, with the company beating by a penny on earnings and meeting on revenue.

Elsewhere, shares of technology companies were the lone sector to finish lower in the S&P 500, Monday, with downbeat outlooks by analysts at Citigroup and Evercore for chip-makers weighing on the group. Dell Inc. (DELL) was an exception to the sector trend, rising about 3% Monday after a prominent shareholder advisory firm sided with CEO Michael Dell in his $24.4-bln bid to purchase all of the computer manufacturer's outstanding stock and taking the company private.

European stocks largely closed higher, reversing overnight declines in Asia. Bond prices rebounded from Friday's drubbing, with the yield for benchmark 10-year Treasury notes falling 10 basis points Monday, roughly halving Friday's rise.

Commodities were mostly higher.

Here's Where The U.S. Markets Stood At day's End

• Dow Jones Industrial Average up 88.85 (+0.59%) to 15,224.69
• S&P 500 up 8.57 (+0.53%) to 1,640.46
• Nasdaq Composite Index up 5.45 (+0.16%) to 3,484.83

• Hang Seng Index down 1.31%
• Shanghai China Composite Index down 2.44%
• FTSE 100 Index up 0.72%

• (+) JNY, Reportedly hires Citigroup to explore a potential sale.
• (+) RGDX, Wins Blue Cross/Blue Shield of Illinois Contract.
• (+) PCLN, Morgan Stanley upgrade to Overweight from Equalweight. The research shop also raised its price target by $241 to $1,001 a share, the only four-digit price target currently for the stock.

• (-) BABY, Sees Cut Q2 revenue outlook below Street estimates.
• (-) CKSW, Guides Q2 below analyst expectations.
• (-) KNDI, Completes registered direct placement of 4.38 mln shares priced at $6.03 apiece with two institutional investors, raising nearly $26.4 mln in net proceeds.