US stocks gain on hopes for Greece deal
This July 15, 2013, file photo,shows a sign for Wall Street outside the New York Stock Exchange, in New York. US stocks gained Wednesday, following European equities higher on hopes for a deal with Greece as US data showed private-sector hiring accelerated in June. AP PHOTO/MARK LENNIHAN
NEW YORK–US stocks gained Wednesday, following European equities higher on hopes for a deal with Greece as US data showed private-sector hiring accelerated in June.
The Dow Jones Industrial Average rose 138.40 points (0.79 percent) to 17,757.91.
The broad-based S&P 500 advanced 14.31 (0.69 percent) to 2,077.42, while the tech-rich Nasdaq Composite Index gained 26.26 (0.53 percent) to 5,013.12.
European equities jumped as investors reacted positively to news of Greece’s bid for a new bailout. Eurozone policy makers said they would not negotiate until Sunday’s referendum in Greece on creditors’ reforms.
“The market today took its cue from the European markets,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “We’re basically hopeful of a deal.”
US businesses added 237,000 jobs last month, up from 203,000 in May and the best level since December, according to payroll firm ADP.
The Department of Labor will release the official US jobs report for June on Thursday. Analysts expect a gain of 230,000 jobs.
Airline stocks tumbled on news that the Justice Department is investigating some carriers for “possible unlawful coordination.” American Airlines fell 2.8 percent, Delta Air Lines lost 2.0 percent and United Continental shed 2.5 percent.
Insurer Chubb soared 26.1 percent on news it will be acquired by Swiss insurer Ace Limited for $28.3 billion. Ace rose 0.8 percent. Other insurers also rose, including Progressive (+2.2 percent) and Travelers (+2.7 percent).
DirectTV rose 1.2 percent on reports Justice Department antitrust regulators will approve its acquisition by AT&T for $48.5 billion. Approval is still pending in the Federal Communications Commission, Bloomberg News said.
Spice company McCormick fell 1.7 percent after second-quarter sales of $1.02 billion lagged analyst forecasts for $1.04 billion.
Department store Macy’s rose 0.4 percent as it severed ties with billionaire presidential candidate Donald Trump, announcing it would end the Trump clothing line following his remarks about Mexican immigrants.
Wearables company Fitbit bolted 10.9 percent higher after RBC Capital Markets initiated coverage and predicted strong growth.
Cable giant Comcast rose 3.5 percent following a Brean Capital report recommending the stock.
Bond prices fell. The yield on the 10-year US Treasury advanced to 2.42 percent from 2.36 percent Tuesday, while the 30-year rose to 3.21 percent from 3.13 percent. Bond prices and yields move inversely.
