Stocks rose on Monday, lifted by natural resource shares on bets on global growth and a share-buyback plan by Intel that added to the allure of the large-cap technology sector.
Intel added 1.6 percent to $21.15, and International Business Machines
The Intel news is part of what's helping some of the big technology stocks do well today, said Howard Ward, portfolio manager of the GAMCO Growth Fund in Rye, New York.
He said investors may be looking at other companies that have used buybacks to compensate investors. Part of the IBM (growth) story is excess cash flow being used to buy back stock.
The Dow Jones industrial average <.DJI> gained 88.06 points, or 0.74 percent, to 11,959.90. The Standard & Poor's 500 <.SPX> rose 6.71 points, or 0.52 percent, to 1,290.06. The Nasdaq Composite <.IXIC> added 25.61 points, or 0.95 percent, to 2,715.15.
The S&P materials sector <.GSPM> advanced 1.4 percent. Copper prices rose as concerns about a decrease in Chinese demand were replaced by worries over supply constraints.
It's very difficult to ignore the positive implications for earnings in material stocks when the global economy is gaining traction, Ward said.
The chief executive of Alcoa Inc
Further boosting the technology sector, Nvidia Corp
Paper and packaging stocks rallied a day after Rock Tenn Co
Rock-Tenn jumped 4 percent to $59.46 and Smurfit-Stone soared 27.2 percent to $35. International Paper
J.C. Penney Co Inc
(Reporting by Rodrigo Campos; Editing by Kenneth Barry)