U.S. Stocks Rebound On Fed Comments

U.S. stocks closed higher, Monday, bouncing back from Friday's late-session selloff after Atlanta Federal Reserve Bank President Dennis Lockhart said in broadcast remarks that the central bank is committed to record stimulus even while acknowledging some of its members are sending a "mixed message" to investors over the timetable when the Fed may begin tapering its quantitative easing. Shares also received a boost from slightly stronger-than-expected data on industrial activity for May. Most sectors in the S&P 500 finished with gains, led by shares of consumer staples companies. Energy and industrial stocks also advanced.

Fed Speak
In televised remarks with Bloomberg News, Lockhart said the conflicting messages from individual members over when the Fed could start cutting back or ending its program of buying bonds and other debt securities "simply reflects the debate that's going on among the colleagues on the Federal Open Market Committee.

"The bigger picture is that any adjustment is not a major policy shift," he continued.

U.S. PMI
Prior to the opening bell, the U.S. Purchasing Managers Index for May weighed in with a 52.3 reading, topping the expert consensus by 0.2. The small upside surprise lent some ballast to earlier trading as investors continued to factor in the possibility of the Fed ending its bond buying as soon as this month, bringing an end to rock-bottom interest rates.

Commodities ended higher. Crude oil for July delivery rose $1.48 to settle at $93.45 per barrel while July natural gas was up a penny to $3.99 per 1 mln BTU after earlier breaching the $4 mark. August gold was up $19.10 to $1,411.70 per ounce while July gold settled 48 cents higher at $22.72 per ounce. July copper added 4 cents to reach $3.33 per pound.

Here's Where The Markets Stood At Day's End

• Dow Jones Industrial Average up 138.46 (+0.92%) to 15,254.03
• S&P 500 up 9.68 (+0.59%) to 1,640.42
• Nasdaq Composite Index up 9.46 (+0.27%) to 3,465.37

• Hang Seng Index down 0.49%.
• Shanghai China Composite Index down 0.07%.
• FTSE 100 down 0.88%.

• (+) CLVS, Reports positive, initial findings from an ongoing Phase I/II monotherapy study of rucaparib, the company's oral, potent, small molecule poly polymerase inhibitor being developed for the treatment of ovarian cancer.
• (+) CBRL Reported Q3 EPS of $1.02 per share, beating expectations by $0.08. Revenue also topped expectations. Offers in-line FY13 per-share earnings guidance.
• (+) ASI, Agrees to be acquired by Fairfax Financial Holdings Ltd (FFH.TO) for around $306 mln. ASI shareholders will receive $29.25 in cash for each share they now own, a 22% premium to Friday's closing price.

• (-) P, Apple (AAPL) Appears set to soon launch its free Internet radio product at WWDC, creating a direct competitor to P, after signing a content and licensing deal with Warner Music Group and its publishing arm.
• (-) SNTA, Reports some improvement - but not statistically significant - increase in overall survival rate among patients with non-small cell lung adenocarcinoma during testing of the company's Hsp90 inhibitor drug candidate, ganetsepib.
• (-) BXE Said it won't be able to meet the remaining conditions needed to close its $300-mln Cardium Joint Venture.