U.S. Stocks Advance on Earnings, Europe Hope

By Inyoung Hwang - Jul 21, 2011 2:02 PM PT .

U.S. stocks rallied, extending a weekly gain for the Standard & Poor’s 500 Index, as European officials announced 160 billion euros ($230 billion) in aid for Greece to stop the region’s debt crisis from spreading.

Morgan Stanley jumped 11 percent, the most since April 2009, after the largest brokerage posted the only gain in trading revenue among major U.S. banks. Motorola Mobility Holdings Inc. soared 12 percent after Carl Icahn urged the handset maker to explore alternatives for its patents. Medco Health Solutions Inc. (MHS) rose 14 percent after Express Scripts Inc. (ESRX) agreed to buy the pharmacy-benefits manager for $29.1 billion.

The S&P 500 added 1.4 percent to 1,343.80 at 4 p.m. in New York, extending its gain this week to 2.1 percent. The Dow Jones Industrial Average climbed 152.50 points, or 1.2 percent, to 12,724.41.

“They’re making sure Greece is properly funded, and hopefully settle down any infection that comes from Greece to the rest of the market, like we’ve seen hitting Italy and Spain,â€