Wall Street Soars on Industrials, Greece talk

NEW YORK – The Dow Jones industrial average jumped back above 10,000 on hope that the European Union will help Greece manage its growing debt burden.

Dow components Coca-Cola Co (KO) and McDonald's Corp (MCD) also supported the market after Coke reported in-line quarterly profit and McDonald's posted a rise in January same-store sales.

Coke's shares gained 1.8 percent to $53.60 and McDonald's added 0.7 percent to $63.39.

Talk of a rescue for Greece was spurred by news that European Central Bank President Jean-Claude Trichet was leaving a meeting of central bankers in Sydney early to attend a European Union leaders' summit.

EU officials later clarified that Trichet's early return to Europe had long been planned.

Worries that rising debt in Greece, Portugal and other euro zone states could undermine a global recovery has sapped confidence from equity markets in recent weeks.

"The biggest overhang has really been the sovereign debt issue that's been plaguing markets for the better part of two weeks," said Arthur Hogan, chief market analyst at Jefferies & Co in Boston.

"I think the biggest driver in this market is the hope we get some sort of resolution in Greece."

The rescue talk and a weaker U.S. dollar also lifted commodity prices, which could lend support to materials shares. The price of oil recovered early losses to rise to near $73 a barrel, and the dollar was off broadly by 0.4 percent.

Morgan Stanley raised its rating on the industrial sector to "attractive" from "in-line," saying the companies' share prices should catch up to an improving business environment. Among the companies it upgraded, shares of Caterpillar Inc (CAT) gained 3.5 percent to $52.54.

The Dow Jones industrial average (.DJI) was up 150.25 points, or 1.52 percent, at 10,058.64, according to the latest available figures. The Standard & Poor's 500 Index (.SPX) gained 13.78 points, or 1.30 percent, to close at 1,070.52. The Nasdaq Composite Index (.IXIC) rose 24.82 points, or 1.17 percent, to close at 2,150.87.

On the downside, shares of Electronic Arts Inc (ERTS) fell about 7.8 percent in premarket trade after the company warned fiscal 2011 earnings would miss expectations.

On Monday the Dow closed below 10,000 for the first time since November, as investors sold bank shares on concerns over the euro zone debt troubles.

The benchmark S&P 500 is off 8.1 percent from its 15-month closing peak of January 19, but still up 56.2 percent from its March 2009 bottom.

Source: Reuters

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