Stocks inch up, shake off weeks of losses

U.S. stocks ended slightly higher Monday after four weeks of losses as investors hesitated to take big risks without a catalyst for buying.

The market was led by large-cap techs and industrials until late in the session when a rally faded. Banks struggled. Bank of America, the largest U.S. bank, fell 7.89 percent to $6.42, the biggest drop among the Dow's components. Chief executive Brian Moynihan sent a memo to senior executives last week outlining plans to cut another 3,500 jobs. JPMorgan Chase lost 2.74 percent to $33.41.

"The ground zero of all worries is financials," said Charlie Smith, chief investment officer of Pittsburgh-based Fort Pitt Capital Group.

Google, Hewlett-Packard and IBM, were among top gainers. Hewlett-Packard shares came back from a 20-percent decline Friday, its worst day since 1987. IBM shares gained 0.91 percent at $158.98 and Hewlett-Packard rose 3.60 percent to $24.45.

The Standard & Poor's 500 has dropped 12.7 percent so far in August on fears of another recession and the intractable European debt crisis. The rebound came on lower volume than in recent days of selling.

"I don't see any major appetite for buying stocks. We are driven higher [today] because of selling exhaustion," said James Dailey, of TEAM Asset Strategy Fund in Harrisburg, Pa.

One possible spark for the market could be Federal Reserve chairman Ben Bernanke's Friday speech in Jackson Hole, Wyo. Some hope he will hint at additional stimulus measures that could buoy stocks.

"Until we get some kind of a catalyst from Europe regarding the sovereign debt crisis or from the Fed later this week, I expect range-bound trading with high intraday volatility," said Dailey.

The Dow Jones industrial average was up 37 points, or 0.34 percent, at 10,854.50. The S&P was up 0.29 point, or 0.03 percent, at 1,123.82. The Nasdaq composite index was up 3.54 points, or 0.15 percent, at 2,345.38.

-- Reuters