Dow Jones: 12,724.41 (+152.50) Nasdaq: 2,834.43 (+20.20) S&P 500: 1,343.80 (+17.96)US STOCKS rallied yesterday, extending a weekly gain for the Standard and Poor's 500, as European officials announced a plan that will give additional aid to Greece and Morgan Stanley's results beat estimates.
Morgan Stanley jumped 11 per cent after the world’s largest brokerage posted a smaller than estimated loss as trading revenue rose from the first quarter.
Motorola Mobility soared 12 per cent.
Medco Health Solutions advanced 14 per cent after Express Scripts agreed to buy the pharmacy-benefits manager for $29.1 billion.
The Dow Jones industrial average gained 152.50 points, or 1.21 per cent, to 12,724.41.
The Standard & Poor’s 500 rose 17.96 points, or 1.35 per cent, to 1,343.80.
The Nasdaq Composite Index advanced 20.20 points, or 0.72 per cent, to 2,834.43.
Alexion Pharmaceuticals rose 9.1 per cent to $56.77 after the drug maker posted better than expected quarterly earnings and raised its 2011 outlook.
“It’s a sigh of relief,” said Joseph Veranth, chief investment officer at Dana Investment Advisors in Brookfield, Wisconsin.
“Progress on Europe’s debt situation is allowing the market to remain at these levels. All of the other satellite countries are looking to see how the EU settles the debt situation in Greece because it has ramifications for the European banks. It’s the framework for a package and the markets have reacted positively,” he said.
Greece will receive additional aid of €109 billion ($157 billion), the European Union said.
French President Nicolas Sarkozy said that measures agreed by euro region leaders to aid Greece will not be replicated to help other countries.
The SP 500 extended gains as the New York Times reported that President Barack Obama and House Speaker John Boehner were close to a “major budget deal,” boosting optimism the world’s biggest economy will avoid defaulting on its debt.
Earnings results have boosted US stocks this week. Of the 100 SP 500 companies that have reported earnings since July 11th, 86 per cent have exceeded analyst estimates, Bloomberg reported. – (Bloomberg/Reuters)
