* Oil jumps above $71, driving up energy stocks
* Broker's upgrade of KB Home lifts home builders' stocks
* Dow up 1.1 pct, S&P 500 up 0.9 pct, Nasdaq up 0.3 pct
* For up-to-the-minute market news click []
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By Caroline Valetkevitch
NEW YORK, June 29 (Reuters) - U.S. stocks rose on Monday
as higher oil prices lifted shares of energy companies and
fund managers snapped up this quarter's winners to embellish
their portfolios.
Energy shares were a strong performer in the quarter, and
a 3.4 percent jump in the price of oil lifted them even
further on Monday. Exxon Mobil Corp <XOM.N> was the Dow's top
driver, rising 2.2 percent to $70.58.
Fund managers are building up their portfolios before the
quarter ends on Tuesday in a ritual known as "window dressing"
by selling some of the quarter's losers and scooping up the
winners. This move bolstered stocks as well.
"This has been a heck of a run," said Marc Pado, U.S.
market strategist at Cantor Fitzgerald & Co, in San Francisco.
"A lot of people didn't believe and left a lot at the table.
Having the right positions (and) not showing a great deal of
cash, that is really the main driving force here -- the
so-called window dressing.
"You can show you own the names that everyone knows did
well," he said.
Financials, the day's top advancer, also led quarterly
gains, followed by technology.
The S&P 500 is up 16.2 percent so far for the quarter,
putting it on track for its best quarter since the fourth
quarter of 1998, when the index jumped nearly 21 percent.
The Dow Jones industrial average <> gained 90.99
points, or 1.08 percent, to end at 8,529.38. The Standard &
Poor's 500 Index <.SPX> was up 8.33 points, or 0.91 percent,
at 927.23. The Nasdaq Composite Index <> was up 5.84
points, or 0.32 percent, at 1,844.06.
Shares of home builders also helped underpin the market
after Credit Suisse raised its rating on KB Home <KBH.N>,
citing stronger orders and more attractive valuation. KB Home
was up 5.1 percent at $14.11. The Dow Jones U.S. Home
Construction Index <.DJUSHB> advanced 1.5 percent.
Wall Street's eyes and ears also were on the news coverage
of Bernie Madoff, who was sentenced to 150 years in prison on
Monday for running what prosecutors called a $65 billion Ponzi
scheme. When Madoff's fraud was revealed last December, its
scope was so brazen and so massive that it shocked investors
and made everyone question their broker.
Signs of life in overseas markets helped to build
optimism about the prospects for an economic recovery.
Shanghai stocks <> reached a one-year closing high
for the fourth straight session as signs of a Chinese economic
recovery and ample liquidity boosted the market, bolstering
investor sentiment.
Crude oil futures <CLc1> jumped $2.33 to settle at $71.49
per barrel after Nigerian militants said they attacked the
country's oil facilities, which set off some concerns about
supply.
An S&P energy index <.GSPE> was up 1.3 percent, while
Occidental Petroleum <OXY.N> jumped 2.9 percent to $66.13.
On the Nasdaq, Microsoft Corp <MSFT.O> advanced 2.2
percent to $23.86 after Deutsche Bank raised its price target
on the stock to $30 from $22.
(Reporting by Caroline Valetkevitch; Editing by Jan Paschal)
