June 17, 2012 / 11:08 PM / 8 years ago

US STOCKS-Futures rise after Greek election

* Election results lessens odds of Greek exit
    * Europe-related volatility expected to persist
    * Futures up: Dow 85 pts, S&P 7.2 pts, Nasdaq 20.25 pts

    By Ryan Vlastelica
    NEW YORK, June 17 (Reuters) - U.S. stock index futures rose
on Sunday with Greek parties that support a bailout for the
country set to win a slim parliamentary majority, bringing some
relief to a world braced for fresh financial turmoil.
    Investors have feared that if the winner had been the
radical left SYRIZA party, which rejects the terms of the
bailout, it could result in Greece leaving the euro zone, the
result of which was uncertain. With 80 percent of the votes
counted, the pro-bailout New Democracy Party led with 30.1
percent while SYRIZA had 26.6 percent.
    "The gain is understandable given the massive fallout that
could have happened had the New Democracy Party lost," said
Michael Yoshikami, chief executive officer at Destination Wealth
Management in Walnut Creek, California. "If they're able to
construct a majority, as it appears, that will be a huge relief
for the market."
    S&P 500 futures rose 7.2 points and were above fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures added 85
points and Nasdaq 100 futures rose 20.25 points.    
    With the gain in futures, Wall Street looked to extend its
recent rally. The S&P rose 1.3 percent last week, the second
straight week of gains for the benchmark index. The Dow rose 1.7
percent in the week while the Nasdaq was up 0.5 percent.
    Wall Street has largely traded on developments from Europe
in recent sessions, with the Greek elections and questions about
a bailout plan in Spain sparking sharp volatility.
    "We'll have all kinds of other headlines for Europe over the
summer that we'll be trading on, so we're nowhere near the end
of volatility," Yoshikami said.
    Sectors tied to the pace of economic growth are likely to
see the biggest reaction to the election results. Financials
, energy and materials have all traded
largely in sync with the developments from Europe.
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