Overnight Markets: US stocks advance as Greece nears bailout

Banking shares led Wall Street higher on Monday as Germany and the European Commission welcomed Greek parliament’s approval of austerity plans needed to qualify for a cash disbursement and avoid a chaotic default.

The Dow Jones industrial average rose 82 points, or 0.64%, to 12,884. The S&P 500 Index gained 10 points, or 0.75%, to 1,353. The Nasdaq Composite added 29 points, or 0.99%, to 2,933.

Greek lawmakers passed drastic cuts in wages, pensions and jobs on Sunday to secure a €130 billion bailout by the European Union and International Monetary Fund. Germany and the European Commission welcomed the move, suggesting euro finance chiefs will pull Greece back from the brink when they meet in two days.

But unrest in the streets and a voting rebellion by lawmakers of the ruling coalition indicated brewing social unrest, which would make it difficult for Athens to stick to the rescue terms.

Financial stocks were among the best performers. Bank of America climbed 2.7% and JPMorgan advanced 1.8%.

In the technology sector, Apple shares rose 1.5% after the company intensified global patent battle with Samsung Electronics by targeting Samsung's latest model using Google’s fast-growing Android software.

Google gained 1.2% as the internet giant is expected to win approval for its planned $12.5 billion purchase of Motorola Mobility, sources said.

Advanced Micro Devices surged 3.4% after being raised at Sanford C. Bernstein & Co. But First Solar tumbled 5% after being downgraded to “hold” from “buy” at Brigantine Advisors.

In pharmaceutical sector, Regeneron Pharmaceuticals surged 13% after significantly raising its 2012 sales forecast for a key eye drug. On the other hand, AmerisourceBergen tumbled 3.6% after the drug distributor said chief financial officer Michael DiCandilo left the company.

Elsewhere, Chesapeake Energy added 2.4% after the natural-gas driller said it is targeting as much as $12 billion in asset sales and joint ventures this year.