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U.S. stocks close higher on ADP report, Greek hopes; Dow up 0.61%

Published 03/07/2012, 04:29 PM
Updated 03/07/2012, 04:31 PM
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Investing.com - U.S. stocks bounced higher Wednesday on Greek debt settlement hopes and a positive ADP employment report.

At the close of  U.S. trade, the Dow Jones Industrial Average gained 0.66%, the S&P 500 index climbed 0.69%, while the Nasdaq Composite advanced 0.87%.

Sparking the rally, a report from ADP employer services indicated that U.S. companies added 216,000 workers in February compared to 170,000 in January.

Adding to the bullish sentiment, investors holding 58% of Greek bonds eligible for the nation’s debt swap have agreed to participate in the sovereign restructuring.

The swap offer has a goal of reducing the EUR206 billion of privately held Greek debt by 53.5%.

Greece has ramped up its rhetoric saying it will force uncooperative debt holders into the swap via collective action clauses if needed.

In bearish news, German factory orders surprisingly declined in January missing estimates for a 0.6% increase.

Banks led the rally, after leading the selling on Tuesday. Bank of America climbed 2.9% and J.P. Morgan Chase advanced 1.8% on the session.

Apple climbed 0.2% in celebration of the release of the iPad 3.

Cienna Corp jumped 5% as the networker forecast higher than expected revenues.

American Eagle Outfitters soared 5.4% after matching analysts’ estimates and forecasting a margin improvement this year.

At the close of European trade, the EURO STOXX 50 added 0.71%, France's CAC 40 climbed 0.89%, while Germany’s DAX advanced 0.57%.  Meanwhile, in the U.K. the FTSE 100 traded up by 0.44%.

On Thursday, investors are awaiting German industrial production, the ECB interest rate and press conference, as well as U.S. initial jobless claims.




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