Stocks rose on Monday, rebounding after losses last week and data showed consumer spending rose slightly more than expected in May.
Consumer-related shares were among top advancers, including Coca Cola Co , up 2.2 percent at $51.37, and Wal-Mart Stores , up 1.4 percent at $49.47.
Spending edged up 0.2 percent in May after being flat in April, even as individual savings at an annual rate rose to the highest in eight months, the Commerce Department said.
Cigarette makers rallied as a U.S. Supreme Court ruling was seen removing uncertainty that a huge legal verdict could be reinstated against the tobacco companies. Shares of Altria shot up 3.3 percent to $20.35.
I think the pressures are ebbing ... and earnings are likely to be very good, said Steve Goldman, market strategist at Weeden & Co. in Greenwich, Connecticut.
Everybody is waiting for further clues on the economy and its outlook, he said.
The Dow Jones industrial average <.DJI> was up 47.91 points, or 0.47 percent, at 10,191.72. The Standard & Poor's 500 Index <.SPX> was up 4.58 points, or 0.43 percent, at 1,081.34. The Nasdaq Composite Index <.IXIC> was up 15.57 points, or 0.70 percent, at 2,239.05.
Telecommunications shares also gained, with AT&T up 1.5 percent at $25.16.
Worries over European debt problems have hung over the market in recent weeks. At the Group of 20 nations summit in Toronto over the weekend, leaders agreed to take divergent paths as they seek to trim budget deficits while ensuring the global economic recovery remained intact.
The G20 leaders also softened a 2012 deadline for banks to build up higher levels of capital and liquidity.
In likely another positive development for corporations, the U.S. Supreme Court struck down part of a 2002 law that created a national board that polices auditors of public companies.
BP U.S.-listed shares rose 2.5 percent to $27.69 after the beleaguered oil giant was forced to defend its chief executive on Monday. Russia's deputy prime minister said he expected the CEO, Tony Hayward, to resign soon.
(Additional reporting by Angela Moon; Editing by Kenneth Barry)