US stocks tread cautiously higher on eurozone wait

NEW YORK: US stock prices rose cautiously Wednesday after two straight days of solid gains as investors waited to see how the eurozone would address the Greek debt problem.

At 1400 GMT, the Dow Jones Industrial Average was up 97.71 points (0.87 percent) to 11,288.40.

The broader S&P 500 rose 6.11 (0.52 percent) to 1,181.49, while the Nasdaq Composite added 15.01 points (0.59 percent) to 2,561.84.

The US markets have shrugged off more poor data on the US economy while they look optimistically to Europe for a fix of the Greek debt crisis.

Although slightly down on Wednesday, European equities markets have sent a cue since Monday that they expect a solution that would avert an uncontrolled default by Athens that could trigger a potential contagion effect through the continent, and hurt many banks holding Greek debt.

Most eyes were on whether Germany's parliament would approve the European Union's July 21 proposal of a second rescue package for Greece and expansion of the European Financial Stability Facility in a vote scheduled Thursday.

"Until we see more conviction in the buying and more clarity on Europe, volatility should remain high," said Sameer Samana of Wells Fargo Advisors.

Shares of online retail giant Amazon were up 3.6 percent as the company was expected to unveil a $199 tablet computer, aimed at competing with Apple's successful iPad.

Apple shares were up 0.9 percent.

The bond market rose slightly. The 10-year Treasury bond yield was at 2.00 percent compared to 2.02 percent late Tuesday, while the 30-year yield fell to 3.09 percent from 3.12 percent.

Bond prices and yields move in opposite directions.

Copyright AFP (Agence France-Presse), 2011