Wall Street up for second dayComment on this story
New York - US stocks rose on Monday, extending Friday's sharp rally as concerns eased over both Federal Reserve monetary policy and the tense situation between Russia and Ukraine.
Vice Fed Chair Stanley Fischer said the recoveries in the US and global economies had been “disappointing” thus far, indicating the Fed may not imminently tighten its monetary policy.
“It appears Fischer believes accommodative monetary policy can help keep cyclical slowdown factors from turning structural, which is dovish in the short run but argues for a potentially higher neutral rate than otherwise in the longer run,” Credit Suisse analysts wrote in a note to clients.
The S&P 500 and Dow on Friday posted their best day since March on news that Russia was ending military drills near the Ukrainian border, a move that was seen as indicating Russia would not send troops into Ukraine anytime soon.
The United States recently launched air strikes in Iraq targeting Islamic State fighters marching on the country's Kurdish capital.
The US is also pushing for a new Iraq government, which Prime Minister Nuri al-Maliki has been battling to prevent, deploying forces across Baghdad as some parliamentary allies sought a replacement.
Separately, Israel and the Palestinians agreed on Sunday to an Egyptian proposal for a new 72-hour ceasefire in Gaza.
“Despite some of the military unrest, the Iraqi crisis looks to be going on a more limited scope and not having a significant impact on the commodity market,” said Eric Teal, chief investment officer at First Citizens Bancshares Inc in Raleigh, North Carolina.
“And at least for the time being, the situation in Ukraine appears fairly contained.”
US crude futures rose 0.5 percent to $98.10 per barrel.
The Dow Jones industrial average rose 56.89 points or 0.34 percent, to 16,610.82, the S&P 500 gained 8.73 points or 0.45 percent, to 1,940.32 and the Nasdaq Composite added 26.84 points or 0.61 percent, to 4,397.74.
Priceline Group Inc shares rose 2.6 percent to $1,314.98 after the company reported a 26 percent rise in second-quarter revenue.
However, the online travel agency forecast third-quarter earnings below expectations.
Kinder Morgan on Sunday said it would put all its publicly traded units under one roof in a $70 billion deal, an amount including $27 billion in assumed debt.
The company was responding to investor concerns about its growth prospects and complicated financial structure.
Shares jumped 8.6 percent to $39.17 as the biggest percentage gainers on the S&P 500.
Among its units, Kinder Morgan Management surged 21 percent to $93.48 while Kinder Morgan Energy Partners LP was up 15 percent to $92.37.
MannKind Corp rose 22 percent to $9.95 after French drugmaker Sanofi signed a worldwide licensing agreement with the company worth up to $925 million.
MannKind was the Nasdaq's most active name.
Chiquita Brands International Inc climbed 31 percent to $13.21 in its biggest one-day advance since its 2002 trading debut after Juice maker Cutrale Group and Brazilian investment firm Safra Group offered to buy the company. - Reuters