U.S. stocks edge higher as markets eye Greece; Dow Jones up 0.22%

Forexpros - U.S. stocks edged higher on Thursday, as sentiment was lifted amid reports that Greek politicians reached a long-awaited austerity deal and after better-than-expected U.S. unemployment data.

During early U.S. trade, the Dow Jones Industrial Average rose 0.22%, the S&P 500 index edged up 0.07%, while the Nasdaq Composite index added 0.22%.

European Central Bank President Mario Draghi said earlier that Greece’s prime minister had informed him that an agreement on the conditions set by international creditors in exchange for a new bailout worth EUR130 billion had been reached.

The deal was to be discussed at a meeting of euro zone finance ministers later in the day.

Risk appetite was also boosted by official data showing that U.S. jobless claims fell to an almost four-year low of 358,000 last week, beating expectations for a decline to 370,000.

Akamai surged 10.77% after the Internet content delivery company reported earnings that topped expectations and forecast first-quarter revenue above estimates.

Financial stocks also added to gains, tracking their European counterparts higher. Shares in Bank of America climbed 1.34% and Citigroup added 0.53%, while Goldman Sachs and JP Morgan rose 0.26% and 0.02%.

On the downside, Diamond Foods plunged 37.15% following news of an internal investigation that found the company had improperly accounted for payments to walnut growers.

The company’s CEO and CFO were placed on leave and the news put the company’s potential purchase of the Pringles brand from Procter & Gamble in doubt. Procter & Gamble shares were up 0.36% after the news.

Elsewhere, PepsiCo tumbled 3.78% after the beverage giant reported better-than-expected profit, but forecast a 5% decline in 2012 earnings as it increases advertising and marketing costs. In addition, the firm said it plans to cut 8,700 jobs in a restructuring.

Across the Atlantic, European stock markets were higher. The EURO STOXX 50 jumped 0.84%, France’s CAC 40 climbed 0.85%, Germany's DAX advanced 0.79%, while Britain's FTSE 100 added 0.57%.

During the Asian trading session, Hong Kong's Hang Seng Index dipped 0.1%, while Japan’s Nikkei 225 Index slumped 0.15%.

Investors were looking ahead to statement by Greek Prime Minister Lucas Papademos outlining the details of the bailout agreement later in the day.