Wall Street climbs as euro plan details emerge
By Chuck Mikolajczak
The euro zone aims to leverage its 440 billion euro bailout fund, the European Financial Stability Facility, or EFSF, "several fold," but finance ministers will only agree the details of how that will be done in November, according to a draft statement obtained by Reuters to be issued after the summit on Wednesday.
"The market has begun to discount any meaningful announcement coming from today's meeting -- that should be helpful for the markets as the bar is set pretty low," said Joseph Tanious, market strategist at J.P. Morgan Funds in New York.
"That said, the devil is always in the details. Are we going to get some clarity around the bank recapitalization? Are we going to get some clarity around leveraging the EFSF and some clarity around Greece? We need to see the degree of which details are going to be released in the statement."
The S&P has risen 9.5 percent for the month on growing optimism a sovereign debt deal in Europe was drawing to a conclusion.
The Dow Jones industrial average <.DJI> rose 140.13 points, or 1.20 percent, to 11,846.75. The Standard & Poor's 500 Index <.SPX><.INX> gained 10.43 points, or 0.85 percent, to 1,239.48. The Nasdaq Composite Index <.IXIC> added 8.90 points, or 0.34 percent, to 2,647.32.
Gains were curbed on the Nasdaq as Amazon.com Inc <AMZN.O> slumped 10.9 percent to $202.41 a day after forecasting a disappointing outlook for the current quarter on costs related to Kindle and other investments. On the upside, Boeing Co <BA.N> rose 4.9 percent to $66.85 after raising its outlook.
According to Thomson Reuters data, of the 206 companies in the S&P 500 that have reported earnings for the quarter , 72 percent have topped Wall Street estimates.
Economic data showed demand for a range of long-lasting U.S.-made goods rising at the fastest pace in six months in September and new homes sales for the same period the strongest in five months.
(Editing by Kenneth Barry)