Google rallied in late trading after its earnings were better than estimated.
The Standard & Poor’s 500 index edged up 2.35 points, or 0.1 percent, to close at 2,126.64.
KEEPING SCORE: The Dow Jones industrial average was up 29 points, or 0.2 per cent, at 18,079 as of 10:29 a.m. Eastern time.
“It appears the sky is clearing”, said Linda Duessel, senior equity strategist at Federated Investors. “It’s expecting more positive economic news”.
Germany’s parliament, which voted in favor of authorizing its finance ministry to negotiate a third bailout with Greece. And the European Central Bank said it would raise the amount of emergency liquidity available to the country’s banks.
Stocks in Europe got a boost from news that Greek lawmakers approved tax hikes, cuts to pensions and other measures demanded by its creditors. The dollar rose after the Fed chief indicated that USA interest rates could start rising later this year.
Policy makers are watching for further improvement in the labor market.
ENERGY: Oil rebounded from a sharp drop triggered by a report on US supplies that showed a smaller-than-expected decline last week. Economists polled by Bloomberg and Reuters in separate surveys had forecast 285,000.
Earnings season is also drawing more focus as investors sift for clues on the health of the world’s largest economy.
GLOBAL OUTLOOK: USA and European markets rose sharply, helped by strong second quarter results from companies such as Netflix, eBay and Citigroup and news that European authorities would provide short term financial help to Greece after it passed an austerity bill needed for more bailout cash.
“A lot of the earnings growth that we are getting, as modest as it is, is coming from financial engineering” like stock repurchases, she said. Earlier in intraday trade, the Nasdaq 100 hit its highest level since the tech bubble in March 2000, with Netflix surging 18 percent and eBay, Stericycle and Micron jumping more than 3 percent. The online auction site agreed to sell its enterprise unit to a private-equity group led by Permira and Sterling Partners for $925 million.
Microsoft and global Business Machines each rose at least 1.4 percent, leading the Dow, with both stocks headed toward their strongest weekly gains in three months.
The S&P 500 also came within 10 points of its record close. Banks in the benchmark extended a rally to a sixth day, the longest winning streak since December 2013.
– Goldman Sachs fell $1.78, or 0.8 percent, to $211.18 after reporting second-quarter profit fell by half on higher provisions for mortgage-related litigation and regulatory matters. The euro rose to $1.0892 from $1.0879. Google rose $87, or 14.6 percent, to $690. Sherwin-Williams fell almost 11 percent to $252.
Additionally, Amazon may climb even higher after it posts its earnings next week, according to a Barron’s report. Shares fell to the lowest since September 2013.