The Dow Jones industrial average was up 75 points in early trading.
NEW YORK – Stocks rose for a fourth day Tuesday on hopes that a Greek vote scheduled for later in the day will help the country avoid a default.The Standard & Poor’s 500 index rose 12, or 0.9 percent, to 1,290 in morning trading. It climbed Monday for the third straight day, its longest winning streak since May. Last week, the S&P eked out a tiny gain to break a six-week losing streak, its longest since 2002.
The Dow Jones industrial average rose 75, or 0.6 percent, to 12,155. The Nasdaq composite rose 38, or 1.4 percent, at 2,667.
Greece’s government faces a confidence vote later Tuesday whose results will be announced after U.S. markets close. If it survives the vote, as expected, that would reassure investors that the country will push through budget cuts required for getting the latest installment of emergency loans. Markets have been jittery since early May that Greece could default on its debt, which would hurt the banks that own Greek bonds and disrupt global financial markets.
The Carnival Fantasy arrives in Charleston, S.C. last May. Carnival Corp.'s second-quarter net income dropped 18 percent but managed to beat Wall Street's view Tuesday as the cruise operator dealt with escalating fuel costs, unrest in the Middle East and North Africa and the aftermath of Japan's earthquake and nuclear disaster. The Federal Reserve also begins its two-day policy meeting later Tuesday. Economists expect it to keep interest rates at record lows, but many don’t expect the central bank to announce another round of bond-buying to help boost the economy.
U.S. stocks appear to be emerging from a slump that began in early May. Reports have shown the economy has weakened, with home prices falling, manufacturing growth slowing and the job market stalling. The National Association of Realtors reported Tuesday that sales of previously occupied homes fell last month to their lowest level of the year.
Despite the faltering economy, analysts still expect corporate earnings growth to remain strong. They forecast second-quarter growth of 14 percent for operating earnings per share of companies in the Standard & Poor’s 500 index. Most large U.S. companies begin reporting quarterly results in early July.
Walgreen, the biggest U.S. drugstore chain, fell 6.4 percent after saying negotiations to stay in Express Script’s pharmacy provider network have reached an impasse. Their deal, worth $5.3 billion in revenue this fiscal year, expires at the end of 2011. Express Scripts fell 1.4 percent.
Best Buy Co. rose 2 percent after increasing its dividend by 7 percent. The electronics retailer also approved a program to buy back up to $5 billion of its stock. Carnival Corp. rose 3.7 percent after the cruise operator reported revenue and earnings that beat expectations.
Investment bank Jefferies Group Inc. fell 2.7 percent after its earnings fell on higher compensation costs. Analysts worry about profit growth overall for investment banks given new regulations.