Debt Deal Soon? U.S. news and Euro Debt Agreement fuel rally ..

Thursday, July 21, 2011

U.S. debt news and euro debt agreement fuel rally

NEW YORK, Stocks climbed on Thursday as signs of progress on the U.S. debt talks and concrete action from Europe on its own debt crisis heartened investors.

Unexpectedly robust earnings results from Morgan Stanley (MS.N), whose shares rose 11 percent to $24.20, extended a relief rally in bank stocks after Goldman Sachs' dismal trading profits stunned the market earlier in the week.

But the biggest news was on a possible U.S. debt deal to save the United States from an unprecedented default.

"We started drifting until we got a report that the president and the speaker of the House were close to an accord, and the market shot up like a rocket at that point," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

The KBW Capital Markets index .KSX rose 2.9 percent.

In Europe, following a summit, euro zone leaders agreed the private sector would provide a net 37 billion euros to a second bailout package for Greece, with the total official financing around 109 billion euros.

http://www.reuters.com/article/2011/07/21/us-markets-stocks-idUSTRE76H1BA20110721?feedType=nl&feedName=usbusinessearly