US Stocks Rise on Hopes for Greek Debt Agreement

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US Stocks Rise on Hopes for Greek Debt Agreement

US stocks rose on hopes that Greek debt negotiations might lead to a deal that will stabilize Europe although the decline in prices of oil limited the advance.

The European Commission will introduce a compromise proposal in which Greece should ask for a six-month period to discuss with lenders pending issues and post-bailout plan according to the report by MNSI.

Fox Business quoted Kim Forrest, senior equity research analyst at Fort Pitt Capital Group as having said, “Clearly the market thinks some resolution’s going to come out of this that’s going to make bond holders not suffer the consequences, and that’s why the market is up.”

Investors are sticking to trading within a narrow range while waiting for geopolitical news from Ukraine and Greece, according to Adam Sarhan, chief executive of Sarhan Capital.

Sarhan said, “Today you’re bouncing off a 50 day moving average, which is a pure technical play. The fundamentals are improving a little bit because the situation in Ukraine did not explode. That was a concern over the weekend. Also, Greece hasn’t fallen off the radar. Investors are looking at this as a cup that’s half full, not half empty.”

According to Reuters the Dow Jones Industrial Average climbed 0.78% or 139.02 points to 17,868.23 while the S&P 500 gained 1.04% or 21.25 points to 2,067.99. The Nasdaq Composite gained 1.26% or 59.42 points to 4,785.43.

Apple Inc shares climbed 1.9% and assisted the boost in the S&P and the Nasdaq after it priced Swiss franc bonds.

Pfizer Inc climbed 3 percent, lifting the S&P health care sector after it said that it would buy back $5 billion of its stock.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com