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US STOCKS-Wall St rises on hint of Greece plan, data helps

Published 06/17/2011, 10:30 AM
Updated 06/17/2011, 10:32 AM
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* France, Germany suggest Greece solution near

* Consumer confidence ticks lower, leading indicators jump

* Indexes up: Dow, S&P both 0.6 pct, Nasdaq 0.3 pct

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

By Rodrigo Campos

NEW YORK, June 17 (Reuters) - U.S. stocks advanced on Friday after the leaders of France and Germany said they were united behind a new aid package for debt-burdened Greece, while U.S. economic data gave support to the gains.

French President Nicolas Sarkozy said "there was no time to lose" on agreeing on a program for Greece, suggesting a deal needed to be reached in July at the latest. For details, see [ID:nLDE75G0ZQ]

"We want to go as quickly as possible without fixing a date," Sarkozy said after meeting with German Chancellor Angela Merkel, adding that the pair had the same position on Greece.

A deal tied to new aid for Greece would ask that banks holding Greek debt voluntarily shoulder some of the burden. Greece's prime minister appointed a new finance minister in a crisis reshuffle to try to push through harsh economic reforms. [ID:nLDE75G0WW] and [ID:nLDE75G0CY]

"What could be described as 'encouraging news' out of Europe regarding a possible rescue of Greece is the primary driver of the rally this morning," said Clark Yingst, chief market analyst at Joseph Gunnar & Co in New York.

The Dow Jones industrial average <.DJI> added 72.13 points, or 0.60 percent, to 12,033.65. The Standard & Poor's 500 Index <.SPX> rose 7.10 points, or 0.56 percent, to 1,274.74. The Nasdaq Composite Index <.IXIC> gained 8.20 points, or 0.31 percent, to 2,631.90.

If the S&P 500 and Dow hold on to gains, the indexes would record their first positive week in seven. The S&P 500 is almost 7 percent below a three-year high hit early last month.

A key measure of future U.S. economic activity rose more than expected in May to a record high, while U.S. consumer sentiment worsened more than forecast in June on continued pessimism about the economy, while worries about inflation eased modestly. [ID:nN17281627] and [ID:nN17219319] (Reporting by Rodrigo Campos; additional reporting by Ryan Vlastelica and European bureaus; editing by Jeffrey Benkoe)

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