US stocks advanced on Thursday led by banks after Morgan Stanley reported better-than-expected results and as details of a new Greece rescue plan emerged. Financials led all S&P sectors, boosted by Morgan Stanley, which posted a narrower-than-expected loss and outperformed rival Goldman Sachs Group Inc despite tough trading conditions.
The S&P Financial Index rose 2.7 percent and Morgan Stanley was up 10.4 percent to $23.98. The Dow Jones industrial average was up 173.58 points, or 1.38 percent, at 12,745.49. The Standard & Poor's 500 Index was up 20.33 points, or 1.53 percent, at 1,346.17. The Nasdaq Composite Index was up 26.36 points, or 0.94 percent, at 2,840.59.