US STOCKS-Wall St advances; Internet stocks lift Nasdaq

lunes 19 de mayo de 2014 14:58 GYT

* Internet names jump; concerns remain over valuation

* AT&T to buy DirecTV for $48.5 billion

* Russell 2000 rebounds after three-day decline

* Dow up 0.2 pct; S&P 500 up 0.4 pct; Nasdaq up 0.8 pct (Updates to late afternoon trading)

By Ryan Vlastelica

NEW YORK, May 19 (Reuters) - U.S. stocks rose on Monday, with another drop in bond yields supporting equities and gains in Internet and biotech stocks giving the Nasdaq an outsized advance.

Equities have been pressured recently, with the S&P 500 coming off its first two-week decline since January as investors have become concerned about the U.S. economy's growth prospects. Last week, readings on retail sales and consumer sentiment fell shy of expectations while labor and housing data provided reason for optimism.

But with the yield on the 10-year U.S. Treasury note near 2.5 percent, investors may have felt compelled to wade into equities and help keep them afloat.

"The listlessness in the market shows the struggle investors are having right now: Valuations are full but not stretched, and there's a lack of decisive evidence that the economy will kick into higher growth and justify these valuations," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.   Continuación...