Apple Inc. stock rose 1 percent after Morgan Stanley said the company's order cuts will ease and production of iPhones and iPads will begin "ramping aggressively." Stanley Black & Decker Inc. gained 1.4 percent after the tool company offered to buy Sweden's Niscayah AB for $1.2 billion. DuPont Co. and Alcoa Inc. fell, and the S&P GSCI Index of 24 commodities sank to the lowest level since January as oil and metals prices fell.
The S&P 500 rose 0.4 percent to 1,273.88 at 9:53 a.m. in New York. The Dow Jones Industrial Average gained 66.49 points, or 0.6 percent, to 12,001.07.
The requirements for banks "are less onerous than had been feared,'' said Scott Tapley, who helps oversee $2.5 billion at 1st Source Investment Advisors Inc. in South Bend, Indiana. "It makes it more likely that they can resume more normal-looking dividend payments sooner rather than later. The less capital they're required to hold, the less they may have to raise to meet the minimum standards, and sooner they'll be able to return capital to shareholders through dividends and buybacks."
Global regulators said banks deemed too big to fail must hold as much as 2.5 percentage points in additional capital as part of efforts to prevent another financial crisis, the Basel Committee on Banking Supervision said in a statement Saturday. As many as 30 banks may face some level of surcharges, according to a person familiar with the discussions.
The S&P 500 has rallied 87 percent since March 2009 as the Federal Reserve held interest rates at a record low. Central banks need to start raising rates to control inflation and may have to act faster than in the past, the Bank for International Settlements said in its annual report published yesterday.
Stock futures erased gains after consumer spending unexpectedly stagnated as employment prospects dimmed and rising inflation caused Americans to cut back, a Commerce Department report showed in Washington today. Purchases rose 0.3 percent in May, the same as in the prior month. Economists had forecast a gain of 0.1 percent, according to the median of 63 estimates compiled by Bloomberg.
Greek lawmakers will vote on a five-year austerity plan this week that must pass before the European Union and the International Monetary Fund will agree to provide further aid. Failure to pass the plan may lead to the euro area's first sovereign default as Greece needs to cover 6.6 billion euros ($9.4 billion) of maturing bonds in August.
The first session of the three-day debate will begin at 6 p.m. in Athens today. The lawmakers will probably vote on June 29. They also need to pass an implementation law, which provides the technical details of how the five-year plan will be applied, before June 30.
Oil fell 1.2 percent to $90.09 a barrel amid concern the economic expansion is slowing. The S&P GSCI Index sank 1 percent to its lowest intraday level since January. DuPont retreated 0.5 percent to $51.70, while Alcoa slid 0.7 percent to $15.12. For the latest updates PRESS CTR + D or visit Stock Market news Today
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