U.S. shares moved modestly higher as investors await the outcome of a two-day Federal Reserve policy meeting and continue to monitor Greek debt talks. The S&P 500 (INDEXSP:.INX) rose 0.3 percent to 2,090.42 at 11:42 a.m. in New York. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) gained 0.4 percent to 17,866.77, while the tech-heavy Nasdaq 100 (INDEXNASDAQ:NDX) added 0.2 percent to 4,442.37. Most followed shares included Avalanche Biotechnologies, Aerie Pharmaceuticals, UnitedHealth Group, Etsy, Alibaba Group, American Airlines, FactSet Research, Oshkosh, Gap, Coty, Fiat Chrysler, and AIG.
In health-care shares, Avalanche Biotechnologies (NASDAQ:AAVL) tumbled 51.8 percent to $18.80, a day after the eye drug developer's experimental therapy showed that vision improvement was not significant. The result prompted brokerages to cut their ratings on the stock.
Aerie Pharmaceuticals (NASDAQ:AERI) gained 53.5 percent to $20.32 after saying the U.S. Food and Drug Administration has allowed the drug maker to modify what will determine a successful late-stage clinical trial for its glaucoma treatment.
UnitedHealth Group (NYSE:UNH) advanced 1.5 percent to $120.71 after approaching Aetna about a takeover deal that would likely be valued at more than $40 billion, the latest move in a frenzy of merger talks in the health-insurance industry.
In technology stocks, Etsy (NASDAQ:ETSY) was little changed at $16.32. Etsy plans to launch a crowdfunding service, allowing sellers to raise money on the crafts retailer's website. The Wall Street Journal reports the service may be launched as soon as today.
Alibaba Group Holding’s (NYSE:BABA) U.S.-listed shares were down 0.2 percent at $86.02 after a report the Chinese e-commerce giant is in talks to jointly invest about $500 million in Snapdeal.com with iPhone assembler Foxconn Technology.
In industrials, American Airlines (NASDAQ:AAL) slipped 1.2 percent to $39.55 after saying it would push back delivery of 35 Airbus Group A320neo family jetliners by several years.
Oshkosh (NYSE:OSK) sank 8.1 percent to $46.19 after cutting its third-quarter and full-year earnings guidance, citing severe weather conditions and a delay in new-product launches.
FactSet Research Systems (NYSE:FDS) fell 1.8 percent to $162.54 even as the provider of financial information and analytical applications posted better-than-expected earnings for its fiscal third quarter.
In consumer shares, Gap (NYSE:GPS) increased 1.2 percent to $38.66 after the retailer late yesterday said it’ll shut 175 of its namesake stores in North America over the next few years, including about 140 this year.
Coty (NYSE:COTY) jumped 19.4 percent to $31.13 after winning an auction to buy three business lines from Procter & Gamble (NYSE:PG), including its Wella hair-care brand, that could value the businesses at as much as $12 billion, the New York Post reported yesterday, citing people familiar with the matter.
Fiat Chrysler Automobiles NV (NYSE:FCAU) slid 0.2 percent to $15.49 as a report showed European car sales rose at the slowest pace in six months in May.
In financials, American International Group (NYSE:AIG) lost 0.8 percent to $62.06 after a court ruled that the government’s bailout of the insurer during the financial crisis was illegally onerous, while still refusing to award damages to Hank Greenberg’s Starr International Co., which took the case.