U.S. stock market rises on optimism for Greek accord

Last Updated Jul 1, 2015 4:49 PM EDT

U.S. stocks climbed on Wednesday, as investors found reason for cheer after Greece indicated it's willing to strike a deal with creditors and data cast a positive spin on manufacturing and the labor market.

Financial shares led gains, with shares of Chubb (CB) jumping after Ace (ACE) said it would acquire the insurer for $28.3 billion in cash and stock. General Mills (GIS) declined after reporting quarterly revenue beneath expectations.

The Dow Jones Industrial Average (DJI) rose 138 points, or 0.8 percent, to close at 17,758. The S&P 500 (SPX) added 14 points, or 0.7 percent, to 2,077. The Nasdaq Composite (COMP) advanced 26 points, or 0.5 percent, to 5,013.

Greek Prime Minister Alexis Tsipras said he is open to using the most recent offer from creditors as a starting point for reaching an accord. The country missed a debt payment on Tuesday to the International Monetary Fund after European leaders rejected attempts by Athens to obtain financing before rescue funds ended. Greeks on June 5 vote on further austerity.

"It's Greece every day all day, that certainly had a pre-open influence, with European equities opening higher. There's some suspicion that perhaps a deal could be worked out even in advance of a referendum," Mark Luschini, chief investment strategist at Janney Montgomery Scott, said. "There is also the fact that we had that ADP report that came out rather strong -- it sets up for a nice number tomorrow."

Economic reports had U.S. manufacturing in June expanding at its most rapid clip in five months, with the Institute for Supply Management's factory index rising to 53.5 from 52.8 in May. Separately, ADP Research Institute reported companies added 237,000 to U.S. payrolls in June, the largest jump in six months.

The Labor Department on Thursday releases its June job report, with the data coming a day ahead of usual due to the July 4 holiday.