(By Balachander) U.S. stocks ended sharply higher, rebounding from losses last week, amid encouraging comments from China to boost growth even as G8 leaders backed Greece's stay in the euro zone.
S&P 500 Index added 1.60 percent to finish at 1,315.99. The Dow Jones Industrial Average gained 1.09 percent to end at 12,504.48. The Nasdaq Composite Index rallied 2.46 percent to close at 2,847.21.
On the European news front, the leaders of the G8 nations vowed to combat financial mess in the region and said they want debt-plagued Greece to remain in the euro zone.
Over the weekend, Chinese Premier Wen Jiabao stressed the need of proactive policies to avoid an economic slowdown, spurring speculation that the government is prepared to provide stimulus to bolster growth in the world's second-largest economy.
Hot Stocks Of The Day: LOW, CBE, FB, YHOO, JPM, DVA, AEO, BGC, CPB, PPHM
In corporate news, Lowe's Companies Inc. (NYSE:LOW) slumped 10.11 percent after the home improvement retailer trimmed its forecast for the year maintaining a cautious view of the housing and macro demand environment. The company now expects EPS in the range of $1.73 to $1.83 from prior expectations of $1.75 to $1.85 for the year.
Cooper Industries Plc (NYSE:CBE) rallied 25.14 percent after the maker of electrical components agreed to be acquire by power management company Eaton Corp. (NYSE:ETN) for about $11.8 billion in cash and stock, or $72.00 per share, a 29 percent premium over previous close.
Facebook Inc. (NASDAQ:FB) tumbled 10.99 percent below its initial public offering price of $38. Shares rose as much as 13 percent in Friday public debut but cooled down and fell back to the IPO price.
Yahoo! Inc. (NASDAQ:YHOO) added 1.04 percent after the California-based internet firm took a key step towards monetizing its valuable Asian assets. Yahoo agreed to sell half of its 40 percent stake in Alibaba Group back to the Chinese internet giant for $7.1 billion, out of which $6.3 billion would be received in cash and the balance $800 million in preferred shares. The deal values Alibaba at about $35 billion.
JPMorgan Chase & Co.