US stocks surge as optimism rises for Greece deal

US stocks jumped early Friday, following European equity markets higher after the latest bailout proposal from Greece lifted hopes of a deal with its creditors.

About 40 minutes into trade, the Dow Jones Industrial Average stood at 17,720.31, up 171.69 points (0.98 percent).

The broad-based S&P 500 rose 19.62 (0.96 percent) to 2,070.93, while the tech-rich Nasdaq Composite Index surged 52.42 (1.06 percent) to 4,974.82.

Debt-riddled Greece on Thursday submitted a new reform plan to creditors that raised hopes that a new bailout program could be agreed to avert the country's financial collapse and exit from the eurozone.

Investors also took heart from a 4.54 percent surge in the Shanghai stockmarket, the second straight day of gains after the Chinese government announced additional policies to stem market turbulence.

Peter Cardillo, chief market economist at Rockwell Global Capital, said the Greek concessions appear significant.

Greece "is on the verge of perhaps signing a deal," Cardillo said.

United Continental rose 4.1 percent after it estimated that passenger revenue per mile, a key benchmark, fell between 5.25-5.75 percent in the second quarter, consistent with analyst expectations.

The figure "while disappointing versus earlier quarter hopes, did not deteriorate more than expected," said Barclays. American Airlines rose 4.5 percent and Delta Air Lines added 3.9 percent.

Fashion retail group Gap dropped 2.0 percent as comparable sales for June fell one percent, led by a five percent decline  in its namesake stores.

Online real estate listings company Zillow sank 4.5 percent on news that chief financial officer Chad Cohen will resign next month. Zillow said it was conducting a search for a new CFO.

Bond prices fell. The yield on the 10-year US Treasury rose to 2.39 percent from 2.30 percent Thursday, while the 30-year advanced to 3.20 percent from 3.10 percent. Bond prices and yields move inversely.