US stocks surge on Greece deal

Gaspare Urso, a trader with Bay Crest Partners, monitors stock prices at the New York Stock Exchange on Monday, July 13, 2015. US stocks powered higher Monday, joining a global equity rally after Greece reached a tentative new bailout deal that would avoid the country dropping out of the eurozone. AP PHOTO/MARK LENNIHAN

NEW YORK–US stocks powered higher Monday, joining a global equity rally after Greece reached a tentative new bailout deal that would avoid the country dropping out of the eurozone.

The Dow Jones Industrial Average surged 217.27 points (1.22 percent) to 17,977.68.

The broad-based S&P 500 jumped 22.98 (1.11 percent) to 2,099.60, while the tech-rich Nasdaq Composite Index gained 73.82 (1.48 percent) at 5,071.51.

After grueling 17-hour talks, Greek Prime Minister Alexis Tsipras accepted a series of tough reforms demanded by official creditors in exchange for new financing which will enable the country to avoid defaulting and avert a turbulent exit from the eurozone.

Brent Schutte, market strategist at BMO Private Bank, said Monday’s march higher was a “relief rally.”

It is “a step closer towards keeping Greece in the union,” he said.

Banking stocks jumped on the eve of earnings reports from JPMorgan Chase and Wells Fargo, which rose 1.6 percent and 1.2 percent respectively. Citigroup gained 1.8 percent and Bank of America added 1.9 percent.

Tech stocks surged including Apple (+1.9 percent), Amazon (+2.7 percent), Facebook (+2.4 percent), Netflix (+4.0 percent) and Priceline (+2.5 percent).

Natural gas processing company MarkWest Energy Partners jumped 14.0 percent on news it will be acquired by a unit of Marathon Petroleum for $15.8 billion. Marathon rose 7.9 percent.

Pharmaceutical company Depomed gained 1.2 percent after enacting a “poison pill” defense to block a third party from taking a controlling stake in the company. The move follows an unsolicited bid from Horizon Pharma to buy Depomed for about $3 billion. Horizon fell 2.7 percent.

Anacor Pharmaceuticals surged 55.9 percent after releasing positive preliminary clinical results for its Crisaborole dermatitis ointment. The company plans to file a new drug application in 2016.

Ascena Retail Group, which operates Dress Barn, Lane Bryant and other apparel chains, slumped 12.8 percent after trimming its full-year earnings forecast to 57-60 cents per share from 70-75 cents per share.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.44 percent from 2.40 percent Friday, while the 30-year advanced to 3.22 percent from 3.19 percent. Bond prices and yields move inversely.