US STOCKS rose yesterday on hopes that Greek debt negotiations could result in a deal that stabilises Europe although a drop in oil prices limited the advance.
S&P 500 utilities and healthcare stocks led the market increase as those sectors bounced back after they declined the day before, while the energy sector was hurt the fall in oil prices.
Investors are sticking to trading within a narrow range as they wait for news from Greece and Ukraine, said Adam Sarhan, chief executive of Sarhan Capital in New York.
“The fundamentals are improving a little bit because the situation in Ukraine did not explode. That was a concern over the weekend,” Sarhan said. “Investors are thinking this is a cup that’s half full, not half empty.”
The European Commission said there was no formal proposal for resolving Greece’s debt problems, although talks were intensive ahead of meetings of Eurozone finance ministers and EU leaders in Brussels.
But the Commission is thought to be introducing a compromise deal.
US crude prices fell five per cent after the International Energy Agency warned of more selloffs in the near term as stockpiles rise.
The Dow Jones industrial average rose 139.55 points, or 0.79 per cent, to 17,868.76, the S&P 500 gained 21.85 points, or 1.07 per cent, to 2,068.59 and the Nasdaq added 61.63 points, or 1.3 per cent, to 4,787.65.
Coca-Cola shares climbed three per cent boosting both the Dow and S&P 500 after it reported a better-than-expected profit. Pfizer rose three per cent, after saying it would buy back $5bn (£3.27bn) of its stock.