U.S. stocks rise on Greek austerity vote

NEW YORK (MarketWatch) � U.S. stocks closed broadly higher Monday after Greece approved austerity measures to ensure funds needed to avoid default.

�This will provide enough financing to avoid a disorderly default in the near term, but it�s unlikely the story is over,� said Bill Stone, chief investment strategist at PNC Asset Management Group in Pittsburgh.

The Dow Jones Industrial Average DJIA �rose 72.81 points, or 0.6%, to 12,874.04.

Click to Play 2011's stock losers are on a tear

SmartMoney's Jack Hough points out that the S&P's 10 worst-performing stocks in 2011 are all of a sudden up nearly 40% in 2012. (Photo: AP)

Coming back after its first weekly decline this year, the S&P 500 Index SPX �added 9.13 points, or 0.7%, to 1,351.77, with industrials gaining the most and utilities the only laggard among its 10 industry groups.

U.S. equities followed stocks around the globe in welcoming Greece�s approval of austerity moves, with European finance ministers now considered likely to ratify a 130 billion euro ($172 billion) package for Greece when they meet in Brussels on Wednesday. Read more on what�s next for Greece.

Gains were broad. On the Dow, 25 of 30 stocks closed higher. On the New York Stock Exchange, advancers beat decliners by more than three to one.

Volume was light, however. Some 683 million shares traded hands on the NYSE; composite volume was 3.6 billion, well under last year�s average of 4.3 billion.

Among outperformers, shares of Apple Inc. AAPL �rose 1.9% to $502.60, closing above $500 for the first time, as the iPhone and iPad maker said a nonprofit labor group has started inspecting working conditions at the factories of its suppliers, including Foxconn�s plants in southern China. Read more on tech stocks.

Other notable gainers included Chesapeake Energy Corp. CHK , rising 2.4% after the oil and natural-gas producer said it would sell off as much as $12 billion in assets and issue another $1 billion in debt to cover expenditures this year. Read more on energy stocks.

The Nasdaq Composite Index COMP �climbed 27.51 points, or 1%, to 2,931.39, a new 52-week high.

Oil futures �in New York topped $100 a barrel amid concern a ban on Iranian crude could curb global supplies. Read more on oil futures.

Gold prices �edged lower to end at $1,724.90 an ounce. In an annual letter to investors, billionaire Warren Buffett reportedly contrasted the metal�s rise to other asset-price bubbles, and dismissed latecomers to the market, saying: �What the wise man does in the beginning, the fool does in the end.� Read more on metal stocks.

In Washington, President Barack Obama sent Congress a $3.8 trillion budget proposal that includes tax hikes for the wealthiest Americans, setting the stage for his re-election campaign. Read more on Obama�s budget.

Also, House Republican leaders said they may set a vote for later in the week on a �backup� plan to extend a 10-month payroll tax cut for the rest of the year without figuring first how to pay for it. The tax cut is now set to expire Feb. 29. Read more on the budget.