Dow Jones:12,004.36 (+42.84) Nasdaq:2,616.48 (–7.22) S&P 500:1,271.50 (+3.86)
US STOCKS snapped a six-week decline yesterday, as European leaders moved closer to a compromise on a financial rescue for Greece and an index of leading American economic indicators advanced more than forecast.
Research In Motion tumbled 21 per cent, sparking a slump in technology shares, after forecasting revenue and profit that missed analysts’ estimates.
Wells Fargo and Fifth Third Bancorp rose at least 1.9 per cent, following gains in European banks.
United Continental added 5.8 per cent to $24.04.
AMR gained 1.3 per cent to $5.69.
Energy shares had the second-biggest decline in the S&P 500 within 10 industries, falling 0.3 per cent as a group.
Halliburton slipped 0.8 per cent to $46.02.
Occidental Petroleum fell 0.6 per cent to $102.19.
Airline companies rallied and energy shares retreated as oil sank to the lowest level in almost four months.
The Standard and Poor’s 500 Index advanced 0.30 per cent to 1,271.50.
The Dow Jones Industrial Average increased 42.84 points, or 0.36 per cent, to 12,004.36.
“This may be an excellent entry point for stock investors,” said James Paulsen, chief investment strategist at Minneapolis-based Wells Capital Management, which oversees about $340 billion.
“There are expectations that an agreement on Greece’s bailout may be reached. If we can get rid of the fears over Europe, it all comes down to – do we believe the economy will reaccelerate in the second half of this year? If that’s the case, stocks have room to rally,” he said.
Global stocks rose yesterday as chancellor Angela Merkel retreated from German demands that bondholders be forced to shoulder a “substantial” share of a Greek rescue, saying she’ll work with the European Central Bank to avoid disrupting markets.
“We would like to have a participation of private creditors on a voluntary basis,” Ms Merkel told reporters in Berlin yesterday.
Attention now shifts to Athens, where prime minister George Papandreou overhauled his cabinet to try and secure passage of austerity measures needed for a bailout. – (Bloomberg/Reuters)
