Shares of Tesla Motors ( TSLA) were jumped16.2% to $27.56 after Morgan Stanley upgraded the electric car company to overweight from equal weight and increased its price target to $70 on expectations for a shift away from internal combustion engines. The Federal Reserve Bank of New York rejected insurer American International Group's ( AIG) $15.7 billion offer to buy a subprime mortgage portfolio the government purchased from the insurer in the early days of the financial crisis. AIG's stock slipped 2.3% at $35.23. Shares of Dendreon ( DNDN) gained 5.3% to $37.41 after the U.S. Centers for Medicare and Medicaid Services said it's leaning toward backing coverage of the company's Provenge treatment for prostate cancer . Microsoft ( MSFT) filed a formal complaint with European antitrust regulators regarding Google's ( GOOG) online search dominance in the region . JDS Uniphase ( JDSU), Frontier Communications ( FTR), Joy Global ( JOYG) and First Solar ( FSLR) were the biggest gainers on the S&P 500. In commodity markets, the May crude contract gained $2.45 to settle at $106.72 a barrel, a 30 month high. The June gold contract jumped $15 to settle at $1,439.90 an ounce, a record high. Gold prices are up 1.3% for the quarter. Silver prices closed 37 cents higher at $37.88 another 31-year record close. Silver popped 22% in the first quarter. The benchmark 10-year Treasury fell 4/32, lifting the yield to 3.457%. The dollar weakened against a basket of currencies, with the dollar index down by 0.3%. . --Written by Melinda Peer and Shanthi Bharatwaj in New York.