US stocks rebound as Greek picture improves
NEW YORK—US stocks rebounded Wednesday after Tuesday’s rout, with investors encouraged by US jobs data and signs that Greece was likely to make Thursday’s deadline to seal a crucial debt writeoff deal.
The Dow Jones Industrial Average gained 78.18 points (0.61 percent) to finish at 12,837.33.
The broad-based S&P 500 added 9.27 (0.69 percent) to 1,352.63, while the tech-rich Nasdaq Composite rose 25.37 points (0.87 percent) to 2,935.69.
A solid showing for February in a key private-sector measure of job creation, and data showing stronger-than-expected productivity in the economy in the fourth quarter of last year, bolstered opening gains and the market continued to rise throughout the session.
Analysts credited a growing confidence that Greece would get the necessary level of private investors to sign on to its 107 billion euro ($140 billion) debt write off and swap plan by Thursday’s deadline.
On Tuesday the Dow and S&P sank more than 1.5 percent following sharp falls in European stocks amid worries that Athens would not find the necessary support for the deal.
“A favorable read on US private-sector jobs helped spark broad-based gains across the major indexes,” Charles Schwab analysts said.
However, they cited concerns about Greece and the slowing pace of global growth as keeping the advance in check, “especially with the deadline for Greece’s debt swap offer on tomorrow’s agenda.”
Caterpillar added 2.2 percent, regaining some of Tuesday’s three-percent-plus loss that came on the back of dampened growth expectations in key markets like China and Brazil.
On the Nasdaq, Apple edged up a scant 0.1 percent after unveiling its newest version of its hot-selling iPad computer tablet.
Amazon, which sells the rival tablet Kindle Fire, jumped 1.5 percent.
Internet radio pioneer Pandora plunged 23.9 percent to $10.86 after issuing a disappointing quarterly outlook.
Bond prices slid. The yield on the 10-year Treasury rose to 1.97 percent from 1.94 percent Tuesday, while the 30-year yield increased to 3.12 percent from 3.08 percent.
Bond prices and yields move in opposite directions.
