Stocks soar; Dow rises almost 300 points

By Patrick Rizzo

Optimism that European leaders will come up with a plan to stave off a Greek default drove shares higher on Wall Street Tuesday.

Just after midday, the Dow Jones industrial average was up almost 300 points, or about 2.5 percent. The broader S&P 500 gained about 2.5 percent.?If the Dow closes higher today, it would be its third straight day of gains.

Euro zone officials were considering a number of options to alleviate the building debt crisis there that has been pounding global financial markets. Last week, stocks, gold, silver and oil?tumbled amid worries that if Europe failed to keep Greece from defaulting on its debt, the ripple effect would hit next hit?Italy, Europe's third-largest economy, and slam banks in Europe and the U.S. who are exposed to?debt from Greece and Italy.

If that happened, it could push the world into a new recession that may be more extreme than the one that officially ended in the U.S. in 2009.

But nothing concrete has emerged yet from Europe and it was uncertain anything would.

"Nothing has drastically changed. We get conversations around how we can get out of this mess -- and those are good. We need those," Michael Sansoterra, portfolio manager of the RidgeWorth Large Cap Growth Fund, told Reuters.

"But we've yet to see any concrete action. Actions speak louder than words, so we'll flail about until we get some action."

Much depended on whether German Chancellor Angela Merkel could persuade lawmakers in her country to agree to?a leveraging up of a bailout fund for Europe that would allow it to raise more money to?stop Greece's woes from spreading elsewhere on the continent.

Most of Wall Street's focus was on Europe rather than issues at home. Investors largely ignored news that showed home prices in most big U.S. cities increased for a fourth straight month in July, and a?flat reading of September consumer confidence.

CNBC's Silvia Wadhwa has the latest details on Tuesday's meeting between Greek Prime Minister Papandreou and German Chancellor Merkel, and a look at whether Europe will be able to overcome its debt crisis, with Rich Ross, Auerbach Grayson; Louise Coo...

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Source: http://bottomline.msnbc.msn.com/_news/2011/09/27/7992221-stocks-soar-dow-rises-almost-300-points

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