U.S. stocks advanced, with the Standard & Poor’s 500 Index rebounding from the biggest weekly loss in three months, as Citigroup Inc. rallied on better-than-forecast earnings and Internet shares rebounded.
Citigroup (NYSE: C) climbed 3 percent, leading financial shares higher as trading revenue topped estimates. Facebook Inc. (Nasdaq: FB) and Netflix Inc. (Nasdaq: NFLX) paced gains in Internet stocks.
Apple Inc. (Nasdaq: AAPL) rose 1.3 percent after Barclays Plc advised investors to buy shares in the world’s biggest company by market value.
URS Corp. (NYSE: URS) jumped 12 percent after Aecom Technology Corp. (NYSE: ACM) agreed to acquire the construction-management company for about $4 billion.
The S&P 500 added 0.5 percent to 1,977.10. The Dow Jones industrial average climbed 111.61 points, or 0.7 percent, to 17,055.42, touching an all-time high in intraday trading.
Goldman Sachs Group Inc. (NYSE: GS) raised its S&P 500 forecast for 2014 on Monday to 2,050 from 1,900. Rising earnings and faster economic growth will push equities higher and stocks are still attractive relative to bonds, according to a research report from David Kostin, chief equity U.S. strategist at the bank.
JPMorgan Chase & Co. (NYSE: JPM), Goldman Sachs, Yahoo! Inc. (Nasdaq: YHOO) and Intel Corp. (Nasdaq: INTC) are among the 58 companies on the S&P 500 posting earnings this week.
Profit by the gauge’s members increased 4.5 percent in the second quarter, and revenue rose 3.1 percent, according to estimates compiled by Bloomberg.
Citigroup jumped 3 percent to $48.42. Better-than-estimated trading revenue and lower credit costs helped second-quarter profit beat analysts’ forecasts.
Bank of America Corp. (NYSE: BAC) added 1.2 percent, JPMorgan Chase climbed 0.9 percent and Goldman Sachs increased 1.3 percent.
Investors will also be watching statements from central banks and economic reports this week for clues to the strength of the global economy.
Federal Reserve Chair Janet Yellen is due to testify to U.S. lawmakers. Yellen will deliver her semiannual monetary policy testimony to the Senate Banking Committee on Tuesday and to the House Committee on Financial Services on Wednesday.
Minutes of the Fed’s June meeting released last week showed officials have agreed they’ll end their asset-purchase program in October if the economy holds up.
At the same time, the policymakers said the central bank should continue to support favorable financial conditions needed to sustain growth, according to the minutes.
More than 5 billion shares changed hands on U.S. exchanges Monday, 13 percent below the three-month average.
Eight out of 10 main industries in the S&P 500 increased Monday, with technology, financial and energy companies gaining more than 0.6 percent. Utilities fell 1.2 percent.
The Dow Jones Transportation Average rallied 0.7 percent to reach a record.
Apple climbed 1.3 percent to $96.45 after Barclays raised its recommendation on the technology company to overweight, or buy, from a rating similar to hold.
Internet stocks, among the worst performers last week, rallied Monday. The Dow Jones Internet composite index increased 1 percent.
Netflix, which tumbled 6.9 percent last week, rebounded 2.9 percent. Pandora Media Inc. (NYSE: P) increased 2.7 percent.
LinkedIn Corp. (NYSE: LNKD), Facebook and Amazon.com Inc. (Nasdaq: AMZN) each climbed at least 2 percent.
TripAdvisor Inc. fell 0.7 percent to $104.05. Nomura Holdings Inc. cut its rating for the vacation planning company to neutral from buy, saying the shares are at full valuation.
TripAdvisor, which trades at 72 times reported earnings, rallied 43 percent to a record on June 27 from a low in April.
URS advanced 12 percent to $58.40. Aecom Technology agreed to acquire the engineering and construction-management company targeted by activist hedge fund Jana Partners LLC, gaining new services in markets like oil and gas.
Gentiva Health Services Inc. (Nasdaq: GTIV) increased 2.5 percent to $16.21. Kindred Healthcare Inc. (NYSE: KND) offered to buy a 14.9 percent stake in Gentiva for $16 a share as the company seeks to become the largest shareholder in the provider of home health-care services.
GoPro Inc. (Nasdaq: GPRO) dropped 5.2 percent to $36.84. The company’s signature first-person-viewpoint camera could be subsumed as smartphones evolve, according to a Barron’s article.
Shares of GoPro have soared 54 percent since they began trading June 26.