Stocks bounce back from losses on reassurance from Greece |

Stocks bounce back from losses on reassurance from Greece

The Associated Press

NEW YORK — Stocks ended higher Wednesday, recovering the most of their losses from the day before, as Greece appeared closer to resolving its latest debt issues.

However, the overall market remains directionless, as most investors are focused on figuring out when the Federal Reserve’s long-awaited interest rate increase may occur.

The Dow Jones industrial average rose 121.45 points, or 0.7 percent, to 18,162.99. It fell 190 points on Tuesday. The Standard & Poor’s 500 index rose 19.28 points, or 0.9 percent, to 2,123.48, and the Nasdaq composite rose 73.84 points, or 1.5 percent, to 5,106.59.

The stock market was barely higher for the first half of the day but gained momentum in the afternoon when Greece’s Prime Minister Alexis Tsipras said his country is near a deal with its creditors. Tsipras stressed that “calm and determination” were needed in the final stretch of negotiations.

Greece might miss a debt payment June 5 if it fails to receive bailout funds from creditors, who are demanding that the country make reforms to its economy. It is unclear whether an agreement can be reached in time, and Greece is dealing with three creditor institutions: the International Monetary Fund, European Commission and European Central Bank.

Missing those payments could destabilize the country’s financial system and eventually push it out of the 19-country eurozone, a step that could shake the currency union and the global economy.

The news helped the euro stabilize against the dollar after its sell-off Tuesday. The drop in the euro was partially blamed for the sell-off.

Outside of Greece and the dollar, most of investors’ attention is on the Fed and when the central bank plans to start raising rates for the first time in almost a decade. Investors and strategists are split on when the central bank will move, with some thinking it could be as early as September and most looking at early 2016.

Market strategists argue that until the market has more clarity from the Fed or from economic data, stocks are unlikely to post solid gains. There was no major economic data Wednesday to move the market one way or another.

“It’s an old but true expression: The market likes certainty. Until we get that from the Fed, stocks are unlikely to make any headway,” said David Lefkowitz, a senior equity strategist at UBS.

In individual stocks, tobacco companies Lorillard and Reynolds American rose after the Federal Trade Commission gave its tacit approval to the companies’ $27.4 billion merger. Lorillard, maker of Newport cigarettes, was up 1 percent to $72.82. Reynolds American, which makes Camel cigarettes, was up 2.3 percent to $77.13.

Michael Kors Holdings sank $14.66, or 24 percent, to $45.93. The handbag and accessories maker posted a drop in year-over-year sales and predicted sales would be well short of analysts’ estimates. And jewelry maker Tiffany & Co. rose $9.01, or 11 percent, to $94.54 after its quarterly results topped analysts’ expectations, despite a stronger dollar.

TribLIVE commenting policy

You are solely responsible for your comments and by using you agree to our Terms of Service.

We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.

While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.

We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers

We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.

We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.

We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.

We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.