By Chuck Mikolajczak
NEW YORK (Reuters) - The U.S. dollar advanced on Monday after a round of economic data kept expectations alive for an interest rate hike from the Federal Reserve this year, while the euro stumbled on concerns about Greece's financial crisis and soft euro zone data.
The strengthening dollar weighed on oil prices, which were also dented by expectations OPEC production would remain high. Brent crude was off 69 cents at $64.87 a barrel, and U.S. crude slipped 36 cents to $59.94 a barrel.
U.S. stocks were higher in a choppy session as a deal by Intel Corp to acquire Altera for $16.7 billion helped lift the technology sector as investors parsed U.S. economic reports.
While data showed U.S. consumer spending remained flat in April, construction spending and manufacturing picked up steam, holding views steady that the Fed will begin to hike interest rates by the end of the year.
"We just got a couple of head fakes where people are trying to second-guess every piece of economic data and tie a causal relationship back to monetary policy, which I think is nonsense," said Art Hogan, chief market strategist at Wunderlich Securities in New York.
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"At some point in time, the Fed will love to get off zero and raise rates. Whether it happens in September or December doesn't really matter."
Boston Fed President Eric Rosengren said current U.S. economic conditions do not warrant a rate hike at this time, while also citing concerns over the euro zone's handling of Greek debt and a slowdown in China.
The U.S. data also sent yields on U.S. debt higher, as U.S. 10-year notes fell 28/32 in price to yield 2.1934 percent.
The Dow Jones industrial average rose 66.06 points, or 0.37 percent, to 18,076.74, the S&P 500 gained 8.65 points, or 0.41 percent, to 2,116.04 and the Nasdaq Composite added 23.11 points, or 0.46 percent, to 5,093.14.
The dollar index was up 0.57 percent at 97.459 after the greenback closed out May with a 2.4 percent climb, its tenth monthly gain in the last 11.
The euro , off 0.59 percent, lost ground after Greece failed to meet a self-imposed Sunday deadline to reach a deal with lenders, keeping the possibility open of a debt default and potential exit from the euro zone. Officials close to creditors negotiating a funding-for-reform package with Greece denied a market rumour that a deal could be announced on Monday afternoon.
The euro was also weakened by surveys that showed manufacturing activity remained soft, boosting expectations for central banks to continue to take steps to support growth.
MSCI's all-country world index of the stock performance in 46 countries inched up 0.02 percent. The pan-European FTSEurofirst 300 closed up 0.06 percent to 1,587.29 points.
European equities managed to post a modest gain as stronger real estate and healthcare offset weaker energy stocks, which fell in sympathy with crude oil prices.
(Reporting by Chuck Mikolajczak; Editing by Nick Zieminski)