Investors largely cast aside rate concerns as the Federal Open Market Committee kicked off its two-day meeting on monetary policy.
Investors also continue to monitor the now-increasing likelihood of a Greek default on its debt to the International Monetary Fund.
Tech giant Microsoft Corp. (Nasdaq: MSFT) offered the biggest boost to the S&P 500 and the Nasdaq. It was up 0.78%.
The S&P 500 Volatility Index (VIX), the market's fear gauge, slipped 3.77%.
The Stock Market News to Know
Biggest Market News Today: Domestic stocks were on the rise despite concerns about a potential default by Greece on its debt obligations and increased chatter about the timing of the Federal Reserve's pending rate increase. M&A speculation was very high today. Tomorrow, Fed Chairwoman Janet Yellen will make a statement at 2 p.m. The central bank is not expected to increase interest rates until the fall, although the IMF has suggested it wait until 2016.
Oil in Focus:Oil priceswere mixed as the markets weighed both European pressures and threats of a tropical storm in the Gulf of Mexico to offshore platforms. Royal Dutch Shell Plc. (NYSE ADR: A), the largest operator of drilling equipment in the Gulf, evacuated non-essential personnel from its platforms Monday. Chevron Corp. (NYSE: CVX) reported the storm threats have not affected production in the region. WTI crude futures for July ticked up 0.8% to top $60 per barrel. Brent oil slid 0.3% to hit $63.75 per barrel.
After the Bell: Following the close of U.S. markets today, keep an eye on earnings reports from Adobe Systems Inc. (Nasdaq: ADBE), Bob Evans Farms (NYSE: BOBE), and La-Z-Boy Inc. (NYSE: LZB).
On Tap Tomorrow: On Wednesday, the FOMC meeting concludes, and Janet Yellen will speak on when the Federal Reserve might raise interest rates.
Earnings Reports: Companies reporting earnings tomorrow morning include Actuant Corp. (NYSE: ATU), FedEx Corp. (NYSE: FDX), Oracle Corp. (Nasdaq: ORCL), and Pier 1 Imports Inc. (NYSE: PIR).
Stocks to Watch No. 1, AET: Shares of Aetna Inc. (NYSE: AET) jumped more than 3.2% on news that rival UnitedHealth Group Inc. (NYSE: UNH) approached the insurance giant about a potential takeover offer. The potential deal is just another in a string of rumors and propositions in the healthcare industry as companies look to cut costs. Yesterday, shares of Cigna Inc.(NYSE: CI) surged nearly 20% intraday to a new all-time record on news that the company rejected a takeover bid from rival Anthem Inc. (NYSE: ANTM).
Stocks to Watch No. 2, UAL: Shares of United Continental Holdings Inc. (NYSE: UAL) slumped almost 2% this afternoon on news that the airline giant plans to cut service at New York's John F. Kennedy International Airport in October. According to company analysts, the firm has not earned a profit at the airport in seven years. The company offered few connections due to the proximity to its Newark, N.J., hub.
Stocks to Watch No. 3, GS: Investment banking giant Goldman Sachs Group Inc. (NYSE: GS) announced that it plans to create a new consumer lending unit designed to provide small loans to American consumers in order to compete with Main Street banks and other lenders. The news is somewhat surprising for a company that has spent 146 years as an investment banking titan and one specializing in deal-making and underwriting. So, why is Goldman making this calculated decision to enter consumer lending? The answer comes down to one advantage the banking giant has over its competitors.
Stocks to Watch No. 4, COTY: Shares of perfume maker Coty Inc. (NYSE: COTY) surged more than 19.3% on news that the company won auctions to purchase the hair-care, fragrance, and cosmetics divisions of Procter & Gamble Co (NYSE: PG) for an estimated $12 billion. Shares of P&G gained 1.25% on the news.
Stay informed on what's going on in the markets by following us on Twitter @moneymorning
Garrett Baldwin is a globally recognized research economist, financial writer, consultant, and political risk analyst with decades of trading experience and degrees in economics, cybersecurity, and business from Johns Hopkins, Purdue, Indiana University, and Northwestern.