Lower than expected unemployment claims boosted gains.
The S&P 500 rallied back from an earlier decline to trade go positive for the day, led by basic materials and railroad stocks. It is trading at 1,076.24, up 8.11 points, or 0.76 percent at 12:07 p.m. EST. The Dow Jones Industrial Average is up 90.54 points, or 0.90 percent, at 10,128.92.
Starting from around 11:20 am EST, the dollar reversed course and began to decline against the euro. Since that time, it lost has about 40 pips.
Even before the dollar's decline, the basic materials sector performed well early in the session. Stocks of key firms in this sector are now up significantly.
The American Depository Receipts (ADRs) of BHP Billiton, the metals and energy giant, are up 3.62 percent. Potash (NYSE:POT), the fertilizer giant, is up 3.83 percent. Southern Copper (NYSE:PCU) is up 4.78 percent.
Transportation stocks are also performing well. Railroad and airline stocks lead this sector. Norfolk Southern (NYSE:NSC) is up 3.11 percent and Delta Air Lines (NYSE:DAL) is up 2.59 percent.
European Union officials have confirmed that they are working on a rescue package for Greece. The details will not be released until next week. A possible option is loans from member states.
The lack of a definitive plan, along with European officials' continued tough stance on Greece's budget deficit, caused the market to drop early in the morning session.
Investor sentiments, however, have been buoyed by lower than expected unemployment claims. President Barack Obama also reiterated his previous statements about employment today, saying that his administration will not rest until jobs are being created to replace those we've lost.
Stocks of retailers, which were down earlier today, are now up modestly. Macy's (NYSE:M) is up 1.25 percent and Sears (NYSE:SHLD) is up 1.76 percent. One notable exception is Wal-Mart (NYSE:WMT), which is struggling with a gain of only 0.04 percent.
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