Hopeful investors await crucial Greek vote
Specialist Frank Masiello, left, and trader Glenn Kessler work on the floor of the New York Stock Exchange. Wall Street was on course to open higher Friday June 15, 2012, with Dow Jones industrial futures rising to 12,650. (June 11, 2012) Credit: AP
Stocks recorded their third big gain of the week and closed at a one-month high Friday because of expectations that the central banks of countries around the world will step in to limit the damage from a debt crisis in Europe.
The Dow Jones industrial average climbed 115 points.
Now investors wait for a crucial election on Sunday in Greece that will help determine whether that country stops using the euro as its currency. Such an exit would destabilize financial markets.
Mario Draghi, president of the European Central Bank, said his institution stood ready to support Europe's banking system by continuing to lend money to solvent banks. He also appeared to leave open the possibility of an interest-rate cut.
Investors also are more confident about the election itself, said Peter Tuz, a money manager at Chase Investment Counsel, which runs mutual funds.
"There's a growing sense of optimism," he said. "The betting now is that the 'let's stay in the euro' segment of the population will win."
The Dow rose 115.26 points to close at 12,767.17, its highest finish since May 11. The Standard & Poor's 500 index climbed 13.74 points to 1,342.84, also its highest since May 11. The Nasdaq composite index rose 36.47 points to 2,872.80.
For the week, the Dow rose 0.91 percent, the S&P 1.03 percent and the Nasdaq 1.29 percent.-- AP
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