Dow Over 10,000; Greek Rescue Plan Pondered

Stocks bounced back Tuesday, buoyed by widespread gains in European markets amid mounting hopes that the European Union might be considering a rescue package for struggling Greece.

The Dow Jones Industrial Average was up 150 points at 10059, off its peak but still a healthy rebound. The S&P 500 advanced 14 points to 1071 and the Nasdaq gained 25 points to 2151. 

On Monday, the Dow Jones Industrial Average finished below the 10000 mark for the first time since early November, losing more than 1%. The S&P 500 fell 0.9%.

Mounting hopes that the European Union might be considering a rescue package for struggling Greece have helped to push European markets and the euro higher Tuesday. Expectations of a bailout have gained weight since it emerged late Monday that European Central Bank President Jean-Claude Trichet will leave an event in Australia earlier than planned to attend a European Union Council meeting Thursday.

The 16-country currency has climbed by more than 0.5% against the dollar from its lowest point of the day Tuesday reaching a peak of $1.3746 against the dollar. 

Among domestic stocks, there were mixed results. Electronic Arts (ERTS) dropped after a disappointing forecast from the video games maker.

Amgen (AMGN) rose  as a trial showed its bone drug denosumab outperformed Zometa from Novartis.

Crude prices inched higher, trading up $2.07 at $73.96 on the Nymex.

Asian markets ended mostly higher on Tuesday, with a rebound in commodity prices and Swiss banking major UBS's return to profit spurring late buying in Hong Kong. China's Shanghai Composite rose 0.5%, Hong Kong's Hang Seng Index advanced 1.2%, Taiwan's Taiex rose 2% and South Korea's Kospi added 1.1%.

The federal government is proposing a ban on banks' ability to invest in private equity deals, which could affect Goldman Sachs' (GS) $14 billion portfolio of real estate and private equity holdings. STORY