Stocks are rising for a fourth day after debt-burdened Greece announced plans to trim spending.
Stocks are rising for a fourth day after debt-burdened Greece announced plans to trim spending.
The Greek plan creates $6.5 billion in savings and is quieting concerns Wednesday that problems there will hurt a global economic recovery.
An improvement in U.S. services industries is also boosting confidence. The Institute for Supply Management's services index for February rose to 53 from 50.5 in January. Economists had forecast that the index would hit 51. Growth in services industries is seen as crucial for a rebound.
At midday, the Dow Jones industrial average is up 47 at 10,453. The Dow has erased its losses for 2010. The Standard & Poor's 500 index is up 6 at 1,124. The Nasdaq composite index is up 10 at 2,291.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP's earlier story is below.
NEW YORK (AP) — Stocks rose Wednesday after debt-burdened Greece announced a budget that creates $6.5 billion in savings.
The new plan had been expected in recent days, which kept reaction to the report muted. Concerns about Greece's debt problems have dogged the markets in recent weeks. Investors have been worried that debt problems could spread through Europe and devalue the euro and upend a global economic recovery.
The euro rose against the dollar.
Meanwhile, an improvement in the nation's services industries boosted confidence in the economy. The Institute for Supply Management's services index for February rose to 53 from 50.5 in January. Economists had forecast that the index would hit 51. Growth in services industries is seen as crucial for a rebound.
Payroll company ADP said employers cut 20,000 jobs last month, matching forecasts from economists polled by Thomson Reuters.
The ADP report is often looked to as an early read on what the government's monthly employment report might say, though there are often wide variations. The Labor Department is expected to report on Friday that the unemployment rate edged up to 9.8 percent last month and that employers cut 50,000 jobs.
Investors will also get better clues about regional economic activity after the Federal Reserve releases its beige book report at 2 p.m. EST.
In late morning trading, the Dow Jones industrial average rose 52.83, or 0.5 percent, to 10,458.81. The Standard & Poor's 500 index rose 6.70, or 0.6 percent, to 1,141.29, while the Nasdaq composite index rose 11.78, 0.5 percent, to 2,292.57.
Bond prices fell, pushing yields higher. The yield on the benchmark 10-year Treasury note rose to 3.65 percent from 3.61 percent late Tuesday.
The dollar fell against other major currencies. Gold rose.
Stocks edged higher for the third straight day on Tuesday. A recent surge in dealmaking has investors upbeat about growth potential. CF Industries made a new offer for Terra Industries, which last month agreed to be sold to Norway's Yara for $4.1 billion. Dow Chemical Co. Bain Capital agreed to buy a plastics business from Dow Chemical Co. for $1.63 billion.
Acquisitions are often seen as signs of confidence in the economy.
More than two stocks rose for every one that fell on the New York Stock Exchange, where volume came to 295.3 million shares, compared with 312.6 million traded at the same point Tuesday.
The Russell 2000 index of smaller companies rose 5.17, or 0.8 percent, to 653.48.
In afternoon trading, Britain's FTSE 100 rose 1 percent, Germany's DAX gained 0.8 percent, and France's CAC-40 rose 0.8 percent. Earlier, Japan's Nikkei stock average rose 0.6 percent.
