Stocks rise as Greece clears final bailout hurdle

By David K. Randall and Francesca Levy, The Associated Press
Posted June 30, 2011, at 6:24 p.m.

NEW YORK — Four days, 480 points.

That’s how the Dow Jones industrial average closed the final four days of June. The Dow added more than 150 points on Thursday alone after Greece cleared the final hurdle needed to receive its next installment of emergency loans. A pickup in manufacturing around Chicago also pushed indexes higher.

The weeklong rally began Monday when Nike Inc. reported quarterly results that showed that consumers were spending more than expected. The stock market’s gains put it on track for the best week since July of last year.

It was a stunning reversal from the beginning of the month, when the Dow dropped nearly 280 points in one day. The first day of June, reports showed that auto sales fell sharply in May and that private companies were hiring far fewer people than expected. The late surge was not enough to turn the broader stock market positive for the month, but it brought the Dow up 0.8 percent for the quarter. The Standard and Poor’s 500 index and Nasdaq composite each lost about 0.3 percent for the month.

Thursday’s gains came after Greek lawmakers passed a cost-cutting bill that had to be approved before international lenders would release $17 billion in rescue funds to Greece. The country needs the money to avoid defaulting on its debt. A default by Greece could disrupt financial markets and lead to a widespread European financial crisis.

Traders were also reassured by encouraging signals about the U.S. economy. A trade group reported that manufacturing in Chicago sped up unexpectedly in June. Analysts had forecast a decline. Earlier in the week, Nike Inc. reported earnings that were better than analysts had predicted. That led many investors to believe that high gas prices haven’t stopped consumers from spending on non-necessities.

The Dow rose 152.92 points, or 1.3 percent, to 12,414.34. The S&P 500 added 13.23, or 1 percent, to 1,320.64. The Nasdaq composite gained 33.03, or 1.2 percent, to 2,773.52.

http://bangordailynews.com/2011/06/30/business/stocks-rise-as-greece-clears-final-bailout-hurdle/ printed on September 30, 2014