Stocks rise as Greece lines up a new bailout deal

Global stock markets rise after Greece agrees to a new bailout deal with its creditors

Associated Press
NEW YORK (AP) — A new agreement between Greece and its creditors helped push U.S. stocks up Monday. The deal for a new loan package is aimed at keeping the country in the euro, but many hurdles remain.The gains were broad. Nearly three stocks rose for every one that fell on the New York Stock Exchange. Every sector in the S&P 500 made gains, except utilities.KEEPING SCORE: The Standard & Poor’s 500 index was up 21 points, or 1 percent, to 2,098, as of 3:25 p.m. Eastern time. The Dow Jones industrial average rose 212 points, or 1.2 percent, to 17,972, while the Nasdaq composite climbed 71 points, or 1.4 percent, to 5,069.A NEW DEAL: European leaders reached a tentative agreement on new loans for Greece, removing an immediate threat that the country would default on its debts and leave the euro. Nine hours after a self-imposed deadline passed, European officials announced the breakthrough early Monday. In exchange for a three-year loan program, the deal requires Greece’s parliament to pass tax increases and other key demands from its lenders into law by Wednesday.REACTION: “Our markets have reason to cheer,” said Tim Dreiling, senior portfolio manager at the U.S. Bank’s Private Client Reserve. “It’s a reprieve from worry for a few days at least.”
EUROPE: Major markets in Europe rallied on the news. Germany’s DAX climbed 1.5 percent and France’s CAC 40 surged 1.9 percent. Britain’s FTSE 100 finished with a gain of 1 percent.NEW WINDOWS: Microsoft said it would roll out Windows 10 in late July. The upgraded operating system is supposed to allow users to switch seamlessly between personal computers and their gadgets. The company’s stock gained 97 cents, or 2 percent, to $45.58, among the biggest gains in the Dow.REPORT CARDS: JPMorgan Chase, Johnson & Johnson and Wells Fargo will turn in their second-quarter results early Tuesday as the earnings season gets under way. Analysts expect overall earnings to fall 4.5 percent compared with the prior year, according to S&P Capital IQ. If that forecast comes true, it would mark the first drop in earnings since 2009.GAS DEAL: Marathon Petroleum soared 8 percent, the biggest gain in the S&P 500, following its announcement that a partnership it runs will buy MarkWest Energy Partners, a company that works with natural gas. Marathon jumped $3.91 to $58.41.ASIA’S DAY: Japan’s Nikkei 225 gained 1.6 percent, South Korea’s Kospi gained 1.5 percent. In China, the Shanghai Composite added 2.4 percent, bouncing back after a slew of government measures to halt a dramatic slide. Hong Kong’s Hang Seng rose 1.3 percent. ENERGY: Benchmark U.S. oil fell 54 cents to close at $52.20 a barrel on the New York Mercantile Exchange. Brent crude, a benchmark for international oils used by many U.S. refineries, fell 88 cents at $57.85 a barrel in London.In other futures trading on the NYMEX:

— Wholesale gasoline fell 7.7 cents to close at $1.940 a gallon.

— Heating oil fell 2.1 cents to close at $1.719 a gallon.

— Natural gas rose 9.4 cents to close at $2.864 per 1,000 cubic feet.

BONDS, CURRENCIES: U.S. government bond prices slipped, pushing yields up. The yield on the 10-year Treasury note rose to 2.43 percent from 2.40 percent late Friday. The euro fell to $1.1026 while the dollar rose to 123.37 yen.

METALS: Precious metals finished with slight losses. Gold lost $2.50 to settle at $1,155.40 an ounce, while silver sank 3 cents to $15.44 an ounce. Copper picked up a penny to close at $2.56 a pound.

___

AP Business Writer Yuri Kageyama contributed to this story from Tokyo.