US STOCKS-Wall St gains as Greek election fears ease

Thu Jun 14, 2012 11:56am EDT

* Jobless claims unexpectedly rise, but focus stays on
Greece
    * Nokia to cut 20 pct of work force, ADRs plummet
    * Stocks up: Dow 0.9 pct, S&P 0.8 pct, Nasdaq 0.6 pct


    By Angela Moon	
    NEW YORK, June 14 (Reuters) - U.S. stocks rose on Thursday
in a broad rally on hopes that results from Greek elections over
the weekend would ease short-term worries about the country
leaving the euro zone.	
    But trading was volatile as weak data in the U.S. labor
market and rising bond yields in Italy and Spain continued to
weigh on investor sentiment.	
    Quick market swings were expected to persist ahead of the
Sunday elections. The prospect that the election results could
lead to Greece's exit from the euro zone had pressured U.S.
equities for the past several weeks and contributed to a steep
decline on Wednesday.	
    "Greek stocks are in rally mode on hopes for a decisive
victory for the conservative New Democracy party. We caught a
glimpse of a headline earlier suggesting that 80 percent of
Greeks want to remain inside the euro area, which is what we
have thought would remain an influential factor throughout the
elections," said Andrew Wilkinson, chief economic strategist	
at Miller Tabak & Co in New York.	
    Greek banking stocks surged on Thursday, rising over 20
percent amid market talk that secret opinion polls showing that
a government favorable to the international bailout agreement
was likely to emerge after the June 17 election. 	
    The Dow Jones industrial average was up 112.84
points, or 0.90 percent, at 12,609.22. The Standard & Poor's 500
Index was up 9.80 points, or 0.75 percent, at 1,324.68.
The Nasdaq Composite Index was up 16.48 points, or 0.58
percent, at 2,835.09. 	
    The CBOE Volatility index, Wall Street's so-called
fear gauge, was down 1.5 percent to near 24, after soaring in
the previous session.	
    The number of Americans filing new claims for unemployment
benefits unexpectedly rose last week, the latest economic data
pointing to sluggish conditions in the United States.
 	
    In other U.S. data, consumer prices fell 0.3 percent in May,
the biggest drop in over three years. 	
    Further weighing on market sentiment, Moody's Investor
Service cut its rating on Spanish government debt on Wednesday
by three notches to Baa3, saying the recently approved euro zone
plan to help Spain's banks will add to the country's debt
burden. 	
    The S&P is flat for the week as sharp drops have been
partially offset by some equally strong rallies. So far in the
second quarter, however, the index is down 5.9 percent.	
    "The decline may have gone far enough that prices may at
least avoid slipping further, but there is still a lot of
uncertainty out there," said Bruce McCain, chief investment
strategist at Key Private Bank in Cleveland.	
    Nokia Corp  plans to cut 10,000 more jobs
and said its phone unit would post a deeper-than-expected loss
in its second quarter because of tough competition. U.S.-listed
shares plunged 17.2 percent to $2.31.
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