Stocks Rally as Oil Tops $71, Madoff Gets Max
Stocks rallied Monday as convicted Ponzi swindler Bernie Madoff received the maximum sentence and oil topped $71 a barrel.
Saying symbolism is important in a case of this magnitude, a judge sentenced Madoff to 150 years in prison, the maximum sought by prosecutors.
"Here the message must be sent that Mr. Madoff's crimes were extraordinarily evil and that this kind of manipulation of the system is not just a bloodless crime that takes place on paper, but one instead that takes a staggering toll," U.S. District Judge Denny Chin said.
Oil stocks rose as crude gained more than $1, topping $71 a barrel.
Investors were also encouraged by economic data out of London, which showed the euro zone's economic-sentiment index rose for a third straight month.
There are no major U.S. economic indicators due out today but later this week, investors will get readings on manufacturing, pending-home sales and unemployment.
Fast-food giant Wendy's saw its shares pop after Barron's wrote that the company could be significantly undervalued and poised for a sharp move higher.
Drug stocks were mostly lower. But Sanofi Aventis rose after a Financial Times report that the Paris-based pharmaceutical was preparing to make acquisitions to strengthen its position in the industry.
But stocks were mixed, with Citigroup down, and Bank of America up.
American depositary shares of UBS rose after the Swiss bank said it will pay it will pay between $2.77 billion and $4.62 billion to settle a US tax probe.
State Street shares slipped after the bank received a "Wells Notice" from the Securities and Exchange Commission regarding a probe into various investment moves in 2007 and in prior periods. State Street said it is cooperating with the inquiry.
Viacom shares rose after "Transformers" proved to be a summer blockbuster for the media giant, raking in $201.2 millionin the five days since it hit theaters Wednesday. Hasbro, which has the licensing rights to "Transformer" products, saw its shares decline. One analyst projected the movie tie-in products could contribute $550 millionto Hasbro's sales this year.
MONDAY: Manufacturing reports from Dallas, Chicago Fed branches; Earnings from H&R Block
TUESDAY: Case-Shiller home-price index; leading indicators; Conf. Board consumer confidence; Fed's Bullard, Hoenig and Yellen speak
WEDNESDAY: Weekly mortgage applications; ISM manufacturing index; construction spending; pending-home sales; weekly crude inventories; Fed's Evans speaks
THURSDAY: Weekly jobless claims; May jobs report; factory orders
FRIDAY: All U.S. financial markets closed for the Independence Day holiday
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