Dow rises 91 after two weeks of losses

The Dow Jones industrial average, coming off its first two-week losing streak since early March, gained 90.99 points, or 1.1 percent, to 8529.38 on Monday.

The S&P 500 rose 8.33 points, or 0.9 percent, to 927.23. All of its sectors gained, led by the consumer-discretionary, utilities and financial sectors, climbing 1.3 percent each.

Some consumer and materials companies have filed better-than-expected fiscal quarter reports in the past week, helping boost sentiment ahead of the flurry of earnings reports that are expected next month.

"The off-calendar earnings have been better than we expected," said Kelli Hill, a portfolio manager with Ashfield Capital Partners. "There has been an overall reduction in expenses, increased margins, and if you get any growth in the second half, that will all go to the bottom line."

Financials were led by SLM, after the Department of Education released details about pricing terms for student-loan servicing contracts. SLM rose 8.5 percent.

Trading volume was low, with fewer than 900 million shares changing hands on the floor of the New York Stock Exchange.

Money managers are also making last-minute moves as the end of 2009's second quarter today draws near. In a phenomenon known as "window dressing," managers often tweak their portfolios before sending out quarter-end statements to clients.

Roger Volz, director of equities, at BGC Partners in New York, said, "We've gone right up to several overbought readings on stocks and oil, but we just can't break through. We just seem to be marking time."

Monday's markets closed following a day of light trading. News of a pipeline attack boosted Exxon, and Sallie Mae's SLM Corp. benefited from a government contract.

Oil futures rose $2.33 to $71.49 a barrel, the highest close in 2 1/2 weeks, in New York amid continued violence in Nigeria's main oil-producing region. Traders also digested reports that the Organization of Petroleum Exporting Countries and the European Union had agreed in talks that the weakened global economy could support crude prices between $70 and $80 a barrel.

Despite a bullish outlook from many oil traders lately, gasoline prices have been under pressure as U.S. refineries have ramped up to full-scale summer production. That has translated into some relief at the pump for everyday consumers, whose purchases of other goods are often crimped at times when they have to pay more to fill up.

According to AAA, the average U.S. price of regular gasoline fell every day last week and was down a fraction of a penny at $2.639 a gallon on Monday, though it still remains up 6.1 percent from a month ago.

Eric Marshall, portfolio manager at Hodges Capital Management in Dallas, said his firm remained out of consumer-discretionary stocks for the most part in 2008, but it has recently been buying a few names in the sector, including Liz Claiborne and Jos. A. Bank Clothiers, as early bets that a rebound is on the way in the United States.

"We've actually been narrowing down the total number of names that we own in our portfolios," from 100 last year to about 50, said Marshall. "But if we see a company with a good balance sheet that has some staying power to get to the other side of the valley in the recession, we are willing to put some money to work."

Several important economic announcements are due later in the week. They include the June employment report, which will be announced earlier than usual on Thursday, as U.S. markets will be closed Friday in recognition of Independence Day.

The Nasdaq Composite Index rose 5.84 points, or 0.3 percent, to 1844.06. Oracle and Sun Microsystems rose 1.2 percent and 1.9 percent, respectively, despite increased scrutiny by the Justice Department of Oracle's proposed $7.4 billion acquisition of Sun.

The dollar was stronger against the yen and weaker against the euro. Treasury prices were higher. The 10-year note gained 12/32 to yield 3.485 percent.

Geoffrey Rogow contributed to this report.