US STOCKS rose yesterday following back-to-back daily declines, with merger activity more than offsetting market concerns as Greece struggles to avoid a default on its debt.
Traders also kept an eye on interest rates as a two-day policy-setting meeting at the Federal Reserve began.
Despite the collapse of talks between Athens and its European and IMF lenders over the weekend, Greek Prime Minister Alexis Tsipras told US treasury secretary Jack Lew that Athens aimed to reach a deal. Lew said failure to reach an agreement would create broad uncertainties for the global economy.
“The market seems to be pricing in a possibility, overpricing, a Greece exit,” said Art Hogan, chief market strategist at Wunderlich Securities in New York.
He said he does not expect a surprise to the market from the Fed in terms of a rate hike, or Greek default.
The Dow Jones industrial average rose 113.31 points, or 0.64 per cent, to 17,904.48, the S&P 500 gained 11.86 points, or 0.57 per cent, to 2,096.29 and the Nasdaq Composite added 25.58 points, or 0.51 per cent, to 5,055.55.
Consumer staples lead the way up, with Coty shares at a record, as it is on track to buy Procter & Gamble’s beauty business.
In other merger news, shares of NCR hit a 14-month high after Reuters reported Blackstone and Carlyle are making a joint bid for NCR in what would be the year’s biggest leveraged buyout at more than $10bn, including debt.