NEW YORK (TheStreet) -- Investors cheered the growing likelihood of a solution to Greece's debt drama on Friday morning as stocks rallied in response to a new proposal of spending cuts.
The Dow Jones Industrial Average added 1.1%, or 189 points, the S&P 500 increased 1.1%, and the Nasdaq climbed 1.4%.
TD Ameritrade (AMTD) is the latest organization to experience technical difficulties in a week plagued by blackouts and glitches. The brokerage firm confirmed it experienced "widespread" issues executing orders but said on its Twitter page that the situation had been resolved. Shares were up 0.85%, though had traded higher earlier in the session.
Earlier this week, the New York Stock Exchange went dark for nearly four hours due to a software update and United Airlines (UAL) grounded flights for an hour after a technical issue.
Greek Prime Minister Alexis Tsipras submitted the latest proposal of spending cuts which mirrored suggestions from eurozone leaders that Greek voters rejected in a referendum over the weekend. The plan includes cuts to government spending, including pensions, and increased taxes.
"As far as we can gather the 'new' Greek proposal isn't markedly different from the ideas on the table when the Greeks overwhelmingly voted against the thing over the weekend," said David Ader, analyst at CRT Capital. "We suppose that poses political problems on the domestic front ... or is couched as an attempted, but failed, effort to get a better arrangement, but as far as the markets seem concerned is all a moot point."
Athens is seeking 53.5 billion euros ($59.9 billion) in bailout money. If approved, the deal would mark the third bailout loan for Greece. It already has received 240 billion euros in funds since 2010. Eurozone leaders will review the proposal and make a decision on the plan in meetings over the weekend.
Federal Reserve Chair Janet Yellen will take the stage at a conference in Cleveland Friday afternoon. Economists will pay close attention to Yellen's comments for any clues as to how international risks are shaping her approach to monetary policy, particularly after minutes from the Fed's June meeting suggested a rate hike could come later than a widely expected increase in September. Yellen is set to begin her speech at 12:30 p.m. EDT.
Apple (AAPL) looked to snap a five-session losing streak on Friday, adding 2.2%. Since the beginning of the month, shares have dropped 4.3%, hard hit by a market selloff tied to worries over instability in Chinese markets and uncertainty in Greece.
Gap (GPS) shares fell 1.9% after the retailer reported a 1% decline in same-store sales in June compared to an expected 0.5% drop. Total sales were flat at $1.54 billion, though rose 2% excluding currency.
American Airlines (AAL) added 4.6% after reporting traffic in June rose 2.8% with capacity increasing 2.4% to 23.9 billion available seat miles.
Unilever (UN) increased more than 5% following on an upgrade to "hold" from "underperform" at Jefferies. Analysts scrapped its bearish call given the company's outperformance against rivals Procter & Gamble (PG) and Kimberly Clark (KMB) so far this year.
Hewlett-Packard (HPQ) was on watch after research firm IDC estimated global PC shipments fell 66.1 million in the second quarter, a factor of a strong dollar and a tough comparable after an increase in sales a year earlier. The 11.8% rate of decline accelerated significantly from a 6.7% drop in the first quarter.
Costco (COST) shares added nearly 3% after Oppenheimer upgraded the stock to "outperform" from "perform" and set a $160 price target. The firm said the retailer would likely raise membership fees and cut back on technology spending.