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U.S. stocks mixed on Greek optimism; Dow up 0.35%

Published 02/17/2012, 04:54 PM
Updated 02/17/2012, 04:58 PM
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Investing.com - U.S. stocks were mixed to higher in thin, pre-holiday trading, buoyed by optimism that Greece is closer than ever to tapping a EUR130 billion bailout fund arranged by its European neighbors.

The Dow Jones Industrial Average closed up 0.35%, the S&P 500 index was up 0.23% while the Nasdaq Composite index finished down 0.27% on Friday.

Greece is seeking EUR130 billion in assistance funding to avoid a messy default in March.

To obtain those funds, the country has agreed to austerity measures set out by multilateral entities, which include the European Union, the European Central Bank and the International Monetary Fund.

The Greek parliament approved austerity, although creditors expressed doubt if all political elements in Greek Prime Minister Lucas Papademos's coalition were seriously committed to austerity, which include pension reform and public-sector layoffs.

Furthermore, doubts arose whether Greece will meet a target of bringing its debt-to-GDP ratio to 120% by 2020.

Greece has insisted has lived up to demands placed on its shoulders, and European leaders appeared increasingly in agreement.

Assistance from Europe will help Greece avoid a messy default, which would rattle financial systems worldwide.

Optimism over a potential Greece deal made riskier assets like stocks more attractive on Friday.

Leading Dow Jones Industrial Average performers included Intel, up 2.03%, DuPont, up 1.88%, and Home Depot, up 1.70%.

Leading index losers included Alcoa, down 1.26%, Hewlett-Packard, down 0.99%, and Bank of America, down 0.87%.

European indices rose as well.

After the close of European trade, the EURO STOXX 50 rose 1.24%, France's CAC 40 rose 1.37%, while Germany's DAX 30 finished up 1.42%. Meanwhile, in the U.K. the FTSE 100 closed up 0.33%.  

All eyes will focus on Europe over the weekend and on Monday, as hints that Greece is even closer to receiving its long-awaited fianancial assistance will serve as the stock market's main weather vane on Tuesday, as Monday is a holiday in the U.S.

On Monday, the Reserve Bank of Australia will release the minutes of its latest monetary policy meeting, while Japan will release its latest trade balance figures.





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