U.S. stocks moved higher on Monday as a bounce back in commodities lifted energy and materials shares, offsetting concerns about European debt.
Stocks seesawed for much of the morning between modest gains and losses after Standard & Poor's downgraded Greece's rating into junk territory on doubts Athens can manage its debt without imposing losses on private bondholders.
The energy and materials sectors were the best performers on the S&P 500 as the Reuters/Jefferies commodities index <.CRB> jumped 1.7 percent.
The iShares Silver Trust exchange-traded fund
The Greece rating cut weakened the euro against the U.S. dollar, shaving gains off commodities and reducing some risk appetite that had lifted futures.
Europe continues to be a regular cloud on the market, dimming the market's bullish mood, said Christian Magoon, chief executive of Magoon Capital in Lisle, Illinois.
The Dow Jones industrial average <.DJI> advanced 61.15 points, or 0.48 percent, at 12,699.89. The Standard & Poor's 500 Index <.SPX> put on 6.84 points, or 0.51 percent, at 1,347.04. The Nasdaq Composite Index <.IXIC> rose 18.03 points, or 0.64 percent, at 2,845.59.
On the S&P 500, 1,340 and 1,333 are key levels that should provide strong support and entice buyers, according to Ryan Detrick, senior technical strategist at Schaeffer's Investment Research.
Despite last week's losses, the S&P 500 held above important technical levels, with the week's low just below 1,330 and Friday's close above 1,340.
Commodities, stocks and the euro have traded in a similar pattern in recent months as low U.S. interest rates boosted risk appetite.
In merger news, Hertz Global Holdings Inc
Dollar Thrifty was up 13 percent at $78.70, while Hertz Global added 0.3 percent at $16.89.
Among companies reporting quarterly results, Sysco Corp
About 70 percent of S&P 500 companies that have reported results have beaten expectations.
(Reporting by Angela Moon; editing by Jeffrey Benkoe)