Dow Jones: 12,414.34 (+152.92) Nasdaq: 2,773.52 (+33.03) SP 500: 1,320.64 (+13.23):US STOCKS rallied yesterday, giving the Standard and Poor's 500 Index its biggest four-day gain since September, amid increased optimism Greece will avoid default and after American business activity improved.
Industrial, energy and technology companies led gains in the SP 500, rising at least 1.4 per cent, as investors bought stocks tied to economic growth.
Dow Jones industrial average rose 152.92 points, or 1.25 per cent, to end at 12,414.34.
The Standard Poor’s 500 Index was up 13.23 points, or 1.01 per cent, at 1,320.64.
The Nasdaq Composite Index was up 33.03 points, or 1.21 per cent, at 2,773.52.
Caterpillar, United Technologies and 3M climbed at least 1.8 per cent to help the Dow Jones Industrial Average erase its quarterly loss.
Hewlett-Packard added 2.4 per cent after a report that private equity firms want the computer maker to split up.
Heavy equipment maker Joy Global rose 5.7 per cent to $95.24 for the biggest percentage gain on the SP while software company NetApp added 5.6 per cent to $52.78.
“It’s not surprising that the market is rebounding,” said Mike Ryan, a New York-based chief investment strategist at UBS Wealth Management Americas.
“The Greece situation will work out, concerns about a soft patch were overdone and earnings will continue to be strong. The market will do better in the second half,” he said.
The Dow average fell 2.5 per cent in June through yesterday amid concern about Europe’s debt crisis and weak economic data.
Global stocks rose yesterday on expectations that Greece will avoid defaulting on its debt. Greek prime minister George Papandreou’s drive to stave off the euro area’s first sovereign default stayed on track after lawmakers backed a bill to authorize an austerity plan required to keep rescue aid flowing.
German banks have agreed to roll over at least the Greek bonds they are holding that mature through 2014, which amount to about €2 billion, finance minister Wolfgang Schaeuble said.
That means reinvesting money from maturing bonds into new Greek bonds. – (Bloomberg/ Reuters)
