By Tanya Agrawal
(Reuters) – U.S. stocks were higher on Monday, with the Dow Jones industrial average moving into positive territory again for the year, after euro zone leaders reached an agreement with Greece to move forward with a bailout loan for the country to avert bankruptcy.
The news moreover put the Nasdaq composite & the S&P 500 on track for their biggest gain in more than two weeks, with the consumer discretionary & financial indexes leading the markets higher.
p>Greece won conditional agreement to receive a possible $95 billion over three years, along with an assurance that euro zone finance ministers would start discussing ways to bridge a funding gap until a bailout â€“ subject to parliamentary approvals â€“ is finally ready.
That will only happen if Greek Prime Minister Alexis Tsipras can meet a tight timetable for enacting unpopular reforms of value added tax, pensions & quasi-automatic budget cuts.
"The U.S. market is following the global markets as Greece nears a deal," said Peter Cardillo, chief market economist at Rockwell Global Capital in New York.
"The stronger Chinese markets are moreover helping yet volatility will be high this week till a Greek deal is finalized & the huge banks set the tone for earnings."
World markets rose, while the dollar index <.DXY> gained 0691 percent to $96.69 against a basket of major currencies following news of the deal. Chinese stocks rose for a third straight day as data showed exports rose while imports slipped in June, a tentative sign global demand might be on the mend.
At 10:52 a.m. ET the Dow Jones industrial average <.DJI> was up 196.22 points, or 1.1 percent, at 17,956.63. The S&P 500 <.SPX> was up 18.8 points, or 0.91 percent, at 2,095.42 & the Nasdaq composite <.IXIC> was up 60.18 points, or 1.2 percent, at 5,057.88.
All the 10 major S&P 500 sectors were higher. The consumer discretionary index's <.SPLRCD> 1.24 percent rise led the gains.
Financial stocks were moreover higher with the index <.SPSY> gaining 0.99 percent, following the Greek debt deal. Big banks such as JPMorgan <JPM.N>, Bank of America <BAC.N>, Citigroup <C.N> were all up more than 1 percent.
Oil prices tumbled as Iran & six world powers closed in on a nuclear deal that would end sanctions on the Islamic Republic & let more Iranian oil on to world markets.
However, the oil price slide boosted U.S. airline stocks <.DJUSAR>. American Airlines <AAL.O>, United Continental <UAL.N>, JetBlue <JBLU.O> & Alaska Air <ALK.N> were all up between 1.8 & 3 percent.
Apple <AAPL.O> rose 1 percent to $124.59 after Socgen upgraded the company's stock to "buy" from "hold", saying it expected a successful launch of the new iPhone 6S in September.
Netflix <NFLX.O> hit a record high of $711.15 after Goldman Sachs raised its price target on the stock to $780 From $620.
The U.S. Treasury Department's June budget report at 2 p.m. ET is expected to show surplus of $51.0 billion, compared with a $82.4 billion deficit reported in May.
Advancing issues outnumbered decliners on the NYSE by 2,177 to 740. On the Nasdaq, 1,937 issues rose & 650 fell.
The S&P 500 index posted 35 new 52-week highs & 10 new lows, while the Nasdaq recorded 121 new highs & 26 new lows.
(Editing by Savio D'Souza)