Optimism about Greece pushes U.S. stocks higher

U.S. stocks rose, after equities capped their worst quarter since 2012, as Greece signalled it was ready to compromise for a bailout and investors awaited Thursday’s monthly jobs report amid signs of a strengthening labour market.

Financial shares in the Standard & Poor’s 500 Index gained the most in three weeks as Chubb Corp. surged 26 per cent after Ace Ltd. agreed to buy the insurer for $28.3 billion (U.S.) in cash and stock. Travelers Cos. gained 2.7 per cent, the most since January. Energy companies retreated 1.3 per cent as oil fell on higher supplies.

The S&P 500 climbed 0.7 per cent to 2,077.42 in New York, for its best gain in two weeks. The Dow Jones industrial average added 138.40 points, or 0.8 per cent, to 17,757.91. The Nasdaq Composite Index advanced 0.5 per cent, while the Russell 2000 Index gained 0.2 per cent to erase an earlier decline. About seven billion shares traded hands on U.S. exchanges, 11 per cent above the three-month average.

“The prospects of removing some of the uncertainty associated with Greece is boosting stocks,” said Mark Luschini, chief investment strategist in Philadelphia at Janney Capital Management LLC, which oversees about $68 billion.

Greek Prime Minister Alexis Tsipras said he was willing to accept creditors’ latest offer as a basis for compromise. The July 5 referendum on more austerity and disagreements over pensions, spending and taxes remain sticking points. Equities trimmed their advance after Tsipras called on voters hours later to reject austerity measures in Sunday’s referendum, hardening a standoff with creditors.

The S&P 500 halted a nine-quarter winning streak Tuesday, losing 0.3 per cent in the past three months and extending its worst start to a year since 2010. Prospects for higher interest rates and Greece’s travails have frozen a market that rose 47 per cent between 2011 and 2013.

The index is still up 0.9 per cent in 2015, holding in a tight range close to a record even after three years of double-digit gains, on optimism the economy is strong enough to withstand higher rates this year.

A report Wednesday showed companies in the U.S. boosted employment in June by 237,000, the most in six months.

Nine of the S&P 500’s 10 main groups advanced on Wednesday.