Stocks Rise, Buoyed by Energy; Techs Slip

Stocks rose modestly Monday, led by a handful of positive economic news, but tech stocks and geopolitical developments limited gains.

The Dow Jones Industrial Average was up more than 10 points after closing in the black last week.

AT&T and Cisco led the gainers on the blue-chip index, while Disney and Home Depot were among the laggards.

The S&P 500 was higher, but the tech-heavy Nasdaq slipped. The CBOE Volatility Index, widely considered the best gauge of fear in the market, traded above 18.

Among the S&P sectors, telecom, energy and utilities gainedwhile techs declined.

“Average investors are not involved in the market," JJ Burns, president of JJ Burns & Company told CNBC, pointing to light volume in the market. "Ultimately, when inflation lasts a little longer, we will have reduced margins and prices and we’ll see stock prices lower quite a bit.”

In the day's economic news, pending home sales unexpectedly gained 2.1 percent in February, according to the National Association of Realtors. Economists had expected the index, which leads existing home sales by a month or two, to fall 1.0 percent after a previously reported 2.8 percent decline.

And U.S. consumer spending rose slightly more than expectedin February for the eighth straight month of gains as households tapped their savings, according to government data, while inflation accelerated at its fastest pace since June 2009.

In Libya, rebels pushed west over the weekend to retake a series of towns from the forces of Muammar Gaddafi who have been pounded by Western air strikes, while in Syria, President Bashar al-Assad deployed the army in the country's main port of Latakia for the first time after nearly two weeks of protests spread across the country.

President Obama will make a national televised address Monday eveningat 7:30 pm ET to defend U.S. participation in NATO mission in Libya. ( will be streaming the event live.)

NATO on Sunday assumed full responsibility for military operations in Libya, ending uncertainty about who would lead the effort.

Oil prices retreated, with U.S. crude trading below $104 and Brent crude under $115 a barrel, after Libyan rebels regained control of key oil towns and the dollar strengthened on hawkish comments from a U.S. central banker. Gold prices fell below $1,418 an ounce.

Energy stocks were mostly higher, including Schlumberger and Halliburton .

Robert W. Baird upgraded a number of telecom companies to "outperform," including Dow components AT&T and Verizon , saying AT&T's deal to buy T-Mobile would help stabilize the hyper-competitive industry.

Alcatel-Lucent shares jumped almost 10 percent after the telecom-equipment stock was upgraded to "buy" from "neutral" by Goldman Sachs. And Nokia gained after Goldman Sachs upgraded the stock to "buy," citing the handset maker's long-term growth potential.

Eastman Kodak surged after a U.S. trade panel agreed to review the company's claim that Research In Motion and Apple are infringing on Kodak's patents.

On the M&A front, online auction giant Ebay announced it is buying GSI Commerce for $2.4 billion.

Meanwhile, Japanese stocks fell after the country was rocked by yet another 6.5 magnitude earthquake and fears over high levels of radiation at the crippled Fukushima reactor.

Wal-Mart Stores will re-open 12 stores of its Seiyu stores in Japanwhich were affected by the earthquake, and is hoping to re-open the remaining 12 stores as soon as possible, according to a spokesman for the retailer.

Meanwhile Deutsche Securities cut its forecasts for , Nissan , Honda and other Japanese automakers. Meanwhile, Honda is recalling 2,800 of its Odyssey minivans to repair potentially faulty windows.

In the second half of the week, investors will shift their focus to the March jobs report, a very closely-watched economic indicator, which is due out Friday.

Coming Up This Week:

MONDAY: Two-year Treasury note auction; Lockhart speaks, Evans speaks.
TUESDAY: S&P Case-Shiller home price index, consumer confidence, five-year Treasury note auction, FDIC meeting on mortgage rules; Earnings from Lennar before-the-bell; Bullard speaks. WEDNESDAY: Mortgage applications, Challenger job-cut report, ADP employment report, oil inventories, seven-year Tresaury note auction, farm prices, Wal-Mart international investor conference; Earnings from Family Dollar before-the-bell and Mosaic after-the-bell; Bullard and Hoenig speak.
THURSDAY: Weekly jobless claims, Chicago PMI, factory orders, money supply; Lacker speaks, Tarullo speaks.
FRIDAY: Auto sales, nonfarm payroll report, ISM manufacturing index, construction spending; Plosser speaks.

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