U.S. stocks rallied from earlier losses on Monday and ended with modest gains. At the closing bell, the Dow Jones Industrial Average moved 0.15% higher, the S&P 500 added 0.3% and the Nasdaq Composite gained 0.6%.
Telecom, health care and financial names led the way higher on the session, while materials and consumer-staples stocks lagged. Elsewhere, the yield on the benchmark 10-year U.S. Treasury note gained 8.8 basis points to 2.30%. The U.S. dollar index (DXY) also moved more than 1.1% higher.
Ann (ANN) was the big winner on Monday, gaining more than 19%. The retailer received a $2.2 billion cash and stock takeover bid from Ascena Retail (ASNA). Altera (ALTR) also moved more than 5% higher on the session on reports of renewed takeover talks with Intel (INTC).
In after-hours action, Urban Outfitters (URBN) is down 13% after posting lower-than-expected quarterly results. On the other hand, Take-Two Interactive (TTWO) is trading 5% higher after posting quarterly results.
Looking ahead to Tuesday morning, retailers Home Depot (HD), TJX (TJX) and Wal-Mart (WMT) headline the earnings calendar. On the economic front, we'll get a look at housing starts and building permits before the opening bell.