Stocks pare gains; Nasdaq sets intraday high on Greece hopes
U.S. stocks rallied on Monday as investors remained optimistic on a deal between Greece and its creditors. ( Tweet This )
The Nasdaq hit a new intraday record, topping the 5,143.32 high set on Thursday. The Russell 2000 also touched a new intraday high.
“The two binary issues out there was the Fed and Greece, and both of those (appear) resolved for the next 12 to 18 months,” said Jack Ablin, chief investment officer at BMO Private Bank.Stocks came off session highs in midday trade as investors weighed euro zone leaders’ remarks on the Greece debt talks. “We may well be in a position where it’s hard to see how optimistic we should be on Greece,” said Art Hogan, chief market strategist at Wunderlich Securities. The Dow Jones industrial average traded about 100 points higher after gaining as much as 166 points. Goldman Sachs, JPMorgan Chase and American Express rose about 1 percent or more to be among index leaders. Financials gained nearly 1 percent as the second-best performer in the S&P 500. The Dow transports briefly rose more than 1 percent as airlines surged. Barron’s gave a favorable outlook on the sector based on lower fuel costs and lack of competition. Dow futures traded about 150 points higher ahead of the open, following a surge in European equities on hopes of resolution in the Greece debt talks. “Today is obviously all about Greece and the fact there might be some breaking of the ice,” said Ben Pace, chief investment officer at HPM Partners. “Perhaps the market’s getting a little ahead of itself because it’s just talks, but there’s light at the end of the tunnel.” The German DAX closed up more than 3.5 percent, while the STOXX Europe 600 gained 2 percent. The ATHEX Composite leaped 9 percent. Read More Key actors to take stake in Greek drama in week ahead The Eurogroup of euro zone finance ministers concluded a meeting in Brussels on Monday and will meet again later in the week on the Greek debt crisis. German chancellor Angela Merkel said in a Reuters report there was no basis on which Greece’s creditors could make a decision and that Monday’s summit of euro zone leaders was only advisory in nature. Eurogroup President Jeroen Dijsselbloem said Greece’s new proposals are a “welcome step” but not enough to solidify a deal today. Over the weekend, Greece’s Prime Minister Alexis Tsipras showed new willingness to make concessions that would unlock aid needed to avoid a default. In a phone call with the Tsipras, U.S. Treasury Secretary Jack Lew, urged Greece again to make a “serious move” at reaching a deal with its creditors, saying it needed to quickly submit proposals that were credible, a Treasury official said in a Reuters report.
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