Pledge to help Greece helps lift markets

A promise by European leaders to help Greece avoid default sent stocks sharply higher Wednesday for the third straight day.

The leaders of Greece, France and Germany agreed in a teleconference that Greece was an "integral" part of the 17-country bloc that uses the euro. Greece also said it would stick to agreements to trim its debts, a condition for getting more financial help. The statements were intended to calm fears that Greece was headed for default or might be forced to drop the euro.

The Dow Jones industrial average rose 140.88 points, or 1.27 percent, to close at 11,246.73. The Dow sank as many as 112 points within the first hour of trading, then rose steadily through the rest of the day.

"The news out of Europe is beginning to sound a bit more friendly," said Peter Cardillo, chief market economist at Rockwell Global Capital, a brokerage in New York.

The Standard & Poor's 500 index rose 15.81 points, or 1.35 percent, to 1,188.68. The Nasdaq composite rose 40.40, or 1.60 percent, to 2,572.55.

The threat of a Greek default and the damage it could wreak on financial markets has had investors on edge in the past two weeks, lifting Treasurys and weighing on stocks. The yield on the 10-year Treasury note hit a record low on Monday of 1.87 percent, and the S&P 500 has only risen three days this month.