(By Balachander) U.S. stocks advanced after a report showed an unexpected rise in the U.S. services-sector activity even as investors waited for clarity from an emergency conference call by the Group of Seven finance ministers to address the euro zone's worsening debt crisis.
S&P 500 Index added 0.57 percent to finish at 1,285.50. The Dow Jones Industrial Average gained 0.22 percent to end at 12,127.95. The Nasdaq Composite Index rose 0.66 percent to close at 2,778.11.
On the US economic front, the Institute for Supply Management's index of non- manufacturing businesses inched up to 53.7 in May from 53.5 in April, while economists expected a flat reading.
The U.S. Treasury Department said G7 finance ministers "reviewed developments in the global economy and financial markets and the policy response under consideration, including the progress towards financial and fiscal union in Europe."
Hot Stocks Of The Day: DG, SBUX, WPRT, AKAM, FAST, SHFL, JASO, GNOM, EDS
In corporate news, Dollar General Corp. (NYSE:DG) shed 3.57 percent after the discount retailer announced plans to sell 25 million shares in an underwritten secondary public offering.
Starbucks Corp. (NASDAQ:SBUX) retreated 2.76 percent after the coffee company agreed to acquire La Boulange Bakery, a private bakery chain based in San Francisco, for $100 million in cash.
Westport Innovations Inc. (NASDAQ:WPRT) shot up 21.55 percent after it agreed with Caterpillar Inc. (NYSE: CAT) to co-develop natural gas technology for off-road equipment, including mining trucks and locomotives.
Fastenal Co. (NASDAQ:FAST) tumbled 9.75 percent after the distributor of industrial and construction supplies reported May sales that were below expectations.
Akamai Technologies Inc. (NASDAQ:AKAM) fell 3.24 percent after Netflix Inc. (NASDAQ:NFLX) said it has established its own content-delivery network (CDN) Open Connect for streaming its videos.
Shuffle Master Inc. (NASDAQ:SHFL) tumbled 13.12 percent after the casino game maker posted inline second-quarter earnings.
US Airways (NYSE: LCC) added 3.94 percent after the airliner said passenger revenue rose 6 percent in May compared with the same period of last year.
JA Solar (NASDAQ: JASO) rallied 16.85 percent after the China-based solar equipment maker reported better-than-expected first quarter shipments.
Complete Genomics Inc. (NASDAQ:GNOM) advanced 6.86 percent after the developer of DNA sequencing platform for human genome sequencing said it is looking at strategic alternatives, including a possible a sale or equity investment. The company also announced a restructuring program that included jobs cuts
Exceed Co Ltd. (NASDAQ:EDS) tumbled 26.89 percent after the footwear and apparel designer forecast a 20 percent drop in 2012 revenue citing a fall in wholesale order activity at its sales fairs.
Among European markets, Germany's DAX slipped 0.15 percent to close at 5,969.40. France's CAC40 advanced 1.07 percent to end at 2,986.10. The U.K. markets are shut for a holiday.
Asian markets ended in green. The Shanghai Composite Index advanced 0.13 percent to end at 2,311.54. Hong Kong's Hang Seng added 0.40 percent to close at 18,259.03. Japan's Nikkei 225 gained 1.04 percent to close at 8,382.00. India's BSE Sensex finished at 16,020.64, up 0.20 percent.
Commodity & Currency Scan:
Crude oil futures gained 0.27 percent to $84.21 per barrel, and natural gas futures added 1.08 percent to $2.441 per million metric British thermal units. Gold futures added 0.33 percent to $1,619.3 per ounce, and silver futures rallied 1.72 percent to $28.490 per ounce.
In the currency market, the euro shed 0.38 percent against the U.S. dollar to $1.2452. The British pound dipped 0.01 percent against the greenback to 1.5382, and the dollar rose 0.54 percent against the Japanese yen to 78.7700.