Stocks rise as fears over Greece debt default ease

Dow Jones: 12,080.38 (+76.02) Nasdaq: 2,629.66 (+13.18) SP 500: 1,278.36 (+6.86):US STOCKS rallied yesterday, as Luxembourg's Jean-Claude Juncker assured investors that a solution will be found to Greece's debt crisis.

Caterpillar, the largest maker of construction equipment, climbed 2.3 per cent as Raymond James and Associates raised its rating.

Biogen Idec jumped 4.1 per cent after ISI recommended buying shares of the largest maker of multiple sclerosis medicines.

The Dow Jones industrial average climbed 76.02 points, or 0.63 per cent, to end at 12,080.38.

The Standard Poor’s 500 Index rose 6.86 points, or 0.54 per cent, to 1,278.36.

The Nasdaq Composite Index gained 13.18 points, or 0.50 per cent, to 2,629.66 at the close.

“It’s critical that we hold in here,” said Bruce McCain chief investment strategist at the private-banking unit of KeyCorp in Cleveland.

“There’s anxiety about the European debt crisis. If they can kick the can down the road, there will be more upside potential than downside risk. The market is oversold,” he said.

Global stocks reversed losses after Mr Juncker, who leads the group of euro-area finance ministers, said he does not believe Italy is in danger amid the euro area’s debt crisis.

Private investors will be present in any second rescue package for Greece, Mr Juncker told reporters in Luxembourg yesterday, though he said he does not know if they’ll be “enthusiastic”.

Still, the International Monetary Fund is not negotiating a second rescue package for Greece while it weighs whether to approve the next payment of the country’s initial program, acting IMF head John Lipsky said.

“It’s quite a conundrum,” said Hayes Miller, the Boston based head of asset allocation in North America at Baring Asset Management.

The US Food and Drug Administration approved a tamper-resistant pain drug from Pfizer and Acura Pharmaceuticals.

Acura shares jumped 16.3 per cent to $4.50, while shares of Pfizer, a Dow component, rose 0.05 per cent to $20.27.

In the consumer discretionary sector, which was also among the top-performing groups, Wal-Mart gained 0.4 per cent to $53.04. – (Bloomberg/Reuters)