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US STOCKS-Wall St higher as investors bet on Greece plan

Published 06/27/2011, 10:46 AM
Updated 06/27/2011, 10:52 AM
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* Investors see resolution in Greek vote, financials gain

* S&P's 200-day moving average seen as support level

* Crude oil falls ahead of Greek vote

* Indexes up: Dow 0.8 pct, S&P 0.7 pct, Nasdaq 0.9 pct

* For up-to-the-minute market news see [STXNEWS/US] (Updates to midmorning)

By Ryan Vlastelica

NEW YORK, June 27 (Reuters) - U.S. stocks rebounded from three days of losses on Monday as investors bet there would be a near-term resolution to some of the uncertainty over Greece's fiscal crisis, but the absence of a firm plan could limit the market's upside.

The Greek parliament will begin to debate a deeply unpopular austerity program that must be approved in order to get the next bailout payment. A Greek minister warned of "catastrophe" if the measure is not passed in a vote later this week.

French President Nicolas Sarkozy said his government had an agreement with French banks on rolling over Greek debt into new 30-year bonds, which helped ease tensions around the region. For details, see [ID:nL6E7HR0GU] and [ID:nTOPEURO]

Traders see a Greek sovereign default as unlikely, and the S&P 500 holding its 200-day moving average was viewed as a sign of technical support following two months of heavy selling that brought the index down about 7 percent.

"There's still a lot of fear out there, but the absence of bad news over the past few days, coupled with the selloff late Friday, is creating a bounce now," said Mitch Rubin, chief investment officer at RiverPark Advisors in New York.

The Dow Jones industrial average <.DJI> was up 89.80 points, or 0.75 percent, at 12,024.38. The Standard & Poor's 500 Index <.SPX> was up 8.33 points, or 0.66 percent, at 1,276.78. The Nasdaq Composite Index <.IXIC> was up 24.56 points, or 0.93 percent, at 2,677.45.

Financials, which have been pressured by the ongoing euro-zone sovereign debt crisis, were among the day's biggest gainers, with the S&P financial index <.GSPF> up 1.1 percent. Bank of America Corp climbed 2.6 percent to $10.79.

In the latest economic data, U.S. consumer spending was unchanged in May, according to a government report, while a reading on Midwest manufacturing rose slightly in May from the prior month. Futures barely moved after the data. [ID:nCAT005468] and [ID:nN9E7GP01X]

August crude futures fell 0.5 percent, continuing a drop of more than 5 percent in less than a week. [ID:nL6E7HR0F] and [O/R]

"The speculative money is coming out of oil, and that could wind up being another catalyst to getting the markets moving," Rubin said. "It should make gas prices a little more temperate, which will help the consumer."

Bristol-Myers Squibb Co shares slid 1.7 percent to $28.59 and U.S.-listed shares of AstraZeneca Plc lost 1.4 percent to $48.31 after a new type of diabetes pill they are developing was found effective in a two-year study but led to more bladder and breast cancers. [ID:nN1E75O04E]

Continucare Corp climbed 32 percent to $6.28 after primary healthcare provider Metropolitan Health Networks Inc offered to buy the rival for about $416 million. Metropolitan fell 7.6 percent to $4.51. (Editing by Jeffrey Benkoe)

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