Dow Jones:12,261.42 (+72.73) Nasdaq:2,740.49 (+11.18) S&P 500:1,307.41 (+10.74)
US STOCKS advanced yesterday, as Greece passed austerity measures and the Federal Reserve was poised to set a less-severe limit on debit-card swipe fees than previously proposed.
Visa and MasterCard, world’s biggest consumer-payment networks, jumped more than 11 per cent, as the Fed moved to cap debit-card transaction fees at 21 cents.
Bank of America climbed 3 per cent after agreeing to pay $8.5 billion to resolve claims over soured mortgages.
Monsanto, the largest seed company, rose 5 per cent after net income jumped 77 per cent.
US Steel paced a rally in steel makers, rising 5.9 per cent, as Deutsche Bank predicted demand rebound.
General Mills rose 0.5 per cent to $37.38 after the cereal maker forecast weaker fiscal year earnings than Wall Street expected.
BJ’s Wholesale Club added 4.6 per cent to $50.29 after it agreed to a buyout by private equity firm Leonard Green Partners and another group.
The Dow Jones industrial average gained 72.73 points, or 0.60 per cent, to 12,261.42.
The Standard & Poor’s 500 Index rose 10.74 points, or 0.83 per cent, to 1,307.41.
The Nasdaq Composite Index added 11.18 points, or 0.41 per cent, to 2,740.49.
“Greece is kicking the can down the road,” said Bruce McCain chief investment strategist at the private banking unit of KeyCorp in Cleveland.
“That’s certainly an important first step. On top of that, the economy has a number of catalysts that could help push the market higher over the next few weeks. We’ve come down a lot on price. It seems a bit overdone,” he said.
The S&P 500 fell 3.6 per cent in June through yesterday, and headed for the second straight monthly loss, amid concern about the European debt crisis and weaker than expected economic data.
Global stocks rose for a third day, the longest advance in a month, as Greek prime minister George Papandreou clinched enough votes to pass the first part of an austerity plan aimed at meeting European Union aid requirements and staving off default for his debt-laden nation. – (Bloomberg/Reuters)
