U.S. shares rallied on renewed hopes that debt-laden Greece will reach a deal with its creditors this weekend and stave off an exit from the eurozone. The S&P 500 (INDEXSP:.INX) added 1.2 percent to 2,075.07. The 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) advanced 1.1 percent to 17,745.71, while the tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) rose 1.4 percent to 4,989.00. Most followed shares included Gap, Tesla, Zillow, Coty, Walgreens, Costco, American Airlines, Alibaba, Barracuda, and Dover.
In technology stocks, Alibaba Group Holding (NYSE:BABA) added 1.5 percent to $80.21, brushing aside a report that the Chinese e-commerce giant’s senior executive Patrick Liu is being held in police custody over corruption allegations related to his previous job at Tencent Holdings Ltd.
Barracuda Networks (NYSE:CUDA) tumbled 21 percent to $31.00. The cybersecurity and storage company said its net loss in the May quarter widened with expenses offsetting an 18 percent increase in revenue. Gross billings, a gauge of future business, showed signs of slowing.
Apple (NASDAQ:AAPL) climbed 2.5 percent to $123.04 after the iPhone maker fell for five straight sessions, the longest losing streak since January.
In consumer shares, Gap (NYSE:GPS) fell 1.2 percent to $37.34 as the retailer said sales at established stores in June declined slightly more than expected, impacted by the stronger dollar and shipment delays. The company is in the process of overhauling its Gap brand, where same-store sales were down 5 percent. Banana Republic same-store sales rose 1 percent, while Old Navy also saw a one percent increase. UBS has now downgraded Gap to "neutral" from "buy," saying it doesn't see sustainable sales improvement until early in 2016.
Tesla Motors (NASDAQ:TSLA) climbed 0.9 percent to $260.12 after the electric car maker hired former Burberry senior vice president Ganesh Srivats to help the electric-car maker extend its reputation for automotive luxury.
Zillow (NASDAQ:Z) fell 5.6 percent to $80.48 after the company said its chief financial officer is leaving the company to pursue other business interests. The departure, expected to be effective Aug. 7, comes as the Seattle company struggles to unite operations with its one-time rival, Trulia, following its roughly $2.5 billion acquisition in February.
Coty (NYSE:COTY) retreated 3.7 percent to $28.92. Wells Fargo downgraded Coty to "market perform" from "outperform," despite a positive view of Coty's purchase of Procter & Gamble's beauty products brands. Wells Fargo notes that the potential for the transaction—which had been rumored for weeks—has already been factored into Coty's share price.
Walgreens Boots Alliance (NASDAQ:WBA), a drug store chain, settled an improper billing case with New York State Attorney General Eric Schneiderman's office for $22.4 million.
Costco Wholesale (NASDAQ:COST) advanced 2.4 percent to $142.84. The largest U.S. warehouse-club chain was upgraded to “outperform” from “perform” at Oppenheimer.
In industrials, American Airlines Group (NASDAQ:AAL) added 3.7 percent to $41.13 after the carrier trimmed its domestic seating capacity growth plans for this year after declines in average fares.
Dover (NYSE:DOV) sank 2.7 percent to $65.40. The maker of equipment and components again cut its outlook for the year, citing weakness in the energy markets and general softness in capital spending.