Shares Rise After Greece Acts to Qualify for Bailout - New York Times

Stocks rose on Monday, with the Standard & Poor’s 500-stock index near seven-month highs, after the Greek Parliament approved measures needed to qualify for a bailout and avoid a default.

Apple shares closed above $500 for the first time after a gain of 1.9 percent, leading the Nasdaq composite index to close at its highest level in more than 11 years. Greek lawmakers backed large cuts in wages, pensions and jobs Sunday as the price of a 130 billion euro, or $171 billion, bailout by the European Union and the International Monetary Fund.

But unrest in the streets and a voting rebellion by lawmakers of the ruling coalition suggested Greece may be on the brink of major social unrest, which would make it difficult for the government to follow the rescue terms.

Douglas S, Roberts, the chief investment strategist at ChannelCapitalResearch.com and managing principal of the Channel Capital Research Institute, cited skepticism about whether the Greek public would accept the measures. But market conditions make it hard for money managers to avoid stocks.

“Mutual fund managers have a herd instinct, and if everyone else is playing the game, with cash yielding zero, they have to participate,” Mr. Roberts said.

The Dow Jones industrial average gained 72.81 points, or 0.57 percent, to 12,874.04. The S.& P. 500-stock index gained 9.13 points, or 0.68 percent, to 1,351.77. The Nasdaq composite index rose 27.51 points, or 0.95 percent, to 2,931.39.

Apple raised the stakes in an intensifying global patent battle with Samsung Electronics by taking aim at Samsung’s latest model, which uses Google’s Android software.

Apple shares rose as high as $503.83 and ended up 1.9 percent at a record close of $502.60. Google rose 1 percent to $612.20.

Google won approval on Monday from European regulators and American antitrust authorities for its planned $12.5 billion purchase of Motorola Mobility, and the approval from the European regulators was announced during trading.

Financial stocks, up 1 percent, were among the best performers on the S.& P 500. Bank of America climbed 2.2 percent to $8.25 and is up almost 50 percent this year. Bank shares continued to outperform after having posted deep losses in 2011.

Regeneron Pharmaceuticals rose 12.3 percent to $114.65 after it raised its 2012 sales forecast for an important eye drug.

As earnings season wanes, 51 companies in the S.& P. 500 are scheduled to report results this week. According to Thomson Reuters data through Monday, of the 357 companies in the benchmark index that have released results, 64 percent have beaten analysts’ expectations.

In other markets, crude oil surged for its biggest gain in six weeks after Greece’s approval of bailout measures raised the euro against the dollar, but copper fell on doubts that Greece would avoid a debt default.

Crude oil futures for delivery in April rose $2.26, to $101.91 a barrel.

“Crude oil prices continue to draw support from a familiar set of factors: progress on Greek sovereign debt, risk of supply disruption linked to sanctions against Iran, and refinery outages that are seen limiting gasoline supply,” Tim Evans, energy analyst for Citi Futures Perspective, said in a note.

Interest rates were steady. The Treasury’s benchmark 10-year note fell 2/32, to 100 7/32. The yield was unchanged at 1.98 percent.

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