Stocks Up After European Market Gains 07/01 09:31
U.S. stocks opened higher Wednesday on hopes that a deal between Greece and
its creditors could be cobbled together to prevent a Greek exit from the euro.
Stocks in Europe rose sharply. In deal news, Chubb Corp. surged after agreeing
to be acquired by rival insurance company Ace Ltd.
NEW YORK (AP) -- U.S. stocks opened higher Wednesday on hopes that a deal
between Greece and its creditors could be cobbled together to prevent a Greek
exit from the euro. Stocks in Europe rose sharply. In deal news, Chubb Corp.
surged after agreeing to be acquired by rival insurance company Ace Ltd.
KEEPING SCORE: The Standard & Poor's 500 index rose 17 points, or 0.9
percent, to 2,080, as of 10:08 a.m. Eastern. The Dow Jones industrial average
climbed 169 points, or 1 percent, to 17,786. The Nasdaq composite gained 44
points, or 0.9 percent, 5,031.
GREEK DEBT CRISIS: Hopes that Greece could reach a deal with its creditors
were raised after Greek Prime Minister Alexis Tsipras wrote a letter to the
nation's creditors and appeared to make concessions. Finance ministers from the
19-country eurozone are due to hold a teleconference over the new proposals.
Stocks rose despite Greece's failure Tuesday to make a 1.6 billion-euro ($1.8
billion) debt payment due to the International Monetary Fund.
EUROPEAN STOCKS: The CAC-40 in France rose 2.6 percent. Germany's DAX
climbed 2.8 percent and the U.K.'s FTSE 100 index of leading European shares
was 1.6 percent higher.
DEAL NEWS: Chubb jumped $31, or 32 percent, to $126.19 after rival insurer
Ace said it was buying the company in a cash-and-stock deal valued at about
$28.3 billion that will boost its international presence. The combined company
plans to use the Chubb name and will have its main offices in Zurich,
Switzerland, where Ace is based. The news pushed up the prices of other
NOT JUST GREECE: While much of the focus in financial markets is on Greece,
there's a raft of U.S. economic data to come this week, notably on Thursday
when the monthly nonfarm payrolls report is published. The data can often set
the market tone for a week or two, especially at a time when the U.S. Federal
Reserve is mulling when to start raising interest rates.
U.S. businesses added jobs at a robust pace in June, a private survey showed
on Wednesday. Payroll processor ADP said Wednesday that businesses added
237,000 jobs last month, up from 203,000 in May. That is the most since
December, according to the ADP's tally.
ENERGY: Benchmark U.S. crude fell $1.25 to $58.21 per barrel on the New York
Mercantile Exchange. Brent crude, used to price international oils, fell 89
cents to $62.71 a barrel in London.
CURRENCIES AND BONDS: The euro fell 0.2 percent to $1.1067 while the dollar
rose 0.6 percent to 123.10 yen. Bond prices fell, pushing the yield on the
benchmark 10-year Treasury note up to 2.43 percent from 2.35 percent on Tuesday.