Wall Street Ends Higher on Greek Deal Optimism


Wall Street Ends Higher on Greek Deal Optimism

US stocks ended higher, propelling the Nasdaq Composite to a record close, lifted by optimism that Greece will eventually reach a bailout deal with its international investors and rallies in healthcare equities and financial equities.

The Dow Jones Industrial Average ended 103.83 points or 0.3% higher on the day at 18,119.78 with about 26 of its 30 components ending higher.

The S&P 500 Index rose 12.86 points or o.6% at 2,122.23 points, less than 0.3% within its record close reached last month.

The technology heavy Nasdaq Composite ended 37.97 points or 0.7% at 5153.97 points, its highest ever close. The Index recorded more than 207 new highs and 26 new lows on the day with Biotechnology shares leading the gains.

“Valuations are somewhat high, but there aren’t many alternatives that look attractive,” Bruce McCain, chief investment strategist at Key Private Bank in Cleveland, Ohio, told Reuters,

“Stocks will probably get a lot higher before there’s any serious risk of a pullback on valuation.”

The Greek government presented a last ditch reform proposals to its creditors on Monday, a move that was lauded by European policy makers as a move in the right direction.

Dutch Finance Minister, Jeroen Dijsselbloem, chair of the Euro zone group of finance policymakers reported that the last ditch proposal could be the basis of a bailout deal expected later this week.

A few analysts, however, still Expect Greece to exit the Euro zone

“We continue to anticipate a Grexit, albeit at a measured pace beginning with a default on the debt, haircuts on collateral pledged as part of the Emergency Loan Assistance program, and eventually capital controls to stem the outflow of funds from Greece.”  Sharon Stark, market strategist at D.A. Davidson, told Market Watch.

This event may then force Greece to exit the Eurozone, but not the EU, and revert to the drachma and begin the painful process of rebuilding the country.”

To contact the reporter of the story: Samuel Rae at samuel@forexminute.com