(By Balachander) U.S. stocks ended on a mixed note as investors weighed developments in Europe, including spike in Spanish borrowing costs and election results in Greece.
S&P 500 Index added 0.14 percent to finish at 1,344.78. The Dow Jones Industrial Average shed 0.20 percent to end at 12,741.82. The Nasdaq Composite Index gained 0.78 percent to close at 2,895.33.
In European news, the yield on Spain's 10-year government bond surged to as much as 7.13 percent, a euro-era record high, a level at which Greece, Portugal and Ireland were forced to seek bailouts. The yield on Italian 10-year government bonds shot up to 6 percent.
Meanwhile, efforts are ongoing in Greece to form a coalition government after a victory for pro-Europe parties in the second round of elections held on Sunday.
In domestic front, a report showed that confidence among U.S. builders rose to a five-year high. The National Association of Home Builders reported that the NAHB/Wells Fargo Housing Market Index rose to 29 in June, the highest since May 2007, from a downwardly revised 28 last month.
There has been speculation that the U.S. Federal Reserve may announce further measures to stimulate the economy during its policy meeting on Wednesday.
Hot Stocks Of The Day: MSFT, GRPN, FB, IDCC, DSW, INFI, RMTR, BODY
In corporate news, Microsoft Corp. (NASDAQ:MSFT) is reportedly expected to announce the launch of its own tablet computer, rivaling Apple's iPad.
Groupon Inc. (NASDAQ: GRPN) jumped 10.83 percent. Morgan Stanley (MS) upgraded shares of the largest daily coupon website to "Overweight" from "Equalweight".
Facebook Inc. (NASDAQ:FB) added 4.92 percent a month after its initial public offering. The social networking giant is set to acquire facial-recognition technology company Face.com.
InterDigital Inc. (NASDAQ:IDCC) rallied 27.10 percent after the company agreed to sell roughly 1,700 patents and patent applications to Intel Corp. (NASDAQ:INTC) for $375 million in cash.
DSW Inc. (NYSE:DSW) tumbled 11.34 percent after it issued second-quarter earnings forecast that trailed market expectations as the footwear retailer cited more normalized gross margin performance and costs related to store expansion.
Infinity Pharmaceuticals Inc. (NASDAQ:INFI) slumped 7.35 percent after drug developer decided to halt study of its experimental drug to treat bone cancer following disappointing data from a mid-stage trial.
Body Central Corp. (NASDAQ:BODY) tumbled 48.59 percent after the retailer of women's apparel reduced second-quarter and full-year earnings guidance, below consensus, citing soft comparable sales.
Ramtron International Corp. (NASDAQ:RMTR) surged 9.47 percent after the maker of semiconductor products said it will explore strategic alternatives, including a potential sale. The company concluded that Cypress Semiconductor Corp.'s (NASDAQ:CY) proposal of $2.48 per share for the company does not reflect its intrinsic value.
European markets ended mixed with Germany's DAX gained 0.30 percent to close at 6,248.20. France's CAC40 retreated 0.69 percent to finish at 3,066.19. The U.K. FTSE 100 rose 0.22 percent to end at 5,491.09.
Among Asian markets, the Shanghai Composite Index rose 0.42 percent to end at 2,316.25. Hong Kong's Hang Seng added 1.01 percent to close at 19,427.81. Japan's Nikkei 225 rallied 1.77 percent to end at 8,721.02. India's BSE Sensex finished at 16,705.83, down 1.44 percent.
Commodity & Currency Scan:
Crude oil futures retreated 1.14 percent to $83.070 per barrel while natural gas futures surged 7.17 percent to $2.644 per million metric British thermal units. Gold futures edged 0.01 percent lower to $1,627.90 per ounce and silver futures fell 0.14 percent to $28.70 per ounce.
In the currency market, the euro dropped 0.50 percent against the U.S. dollar to 1.2575. The British pound slipped 0.31 percent against the greenback to 1.5667, while the dollar gained 0.46 percent against the Japanese yen to 70.0900.