Jul 16, 2015 3 min read

NEW YORK – Stocks are rising broadly in afternoon trading Thursday after several big companies reported better-than-expected earnings. The rise in U.S. stocks follows a rally in European markets on news Greece’s parliament approved tax increases, cuts to pensions and other measures demanded by its creditors. The country got more loans and assistance to its banks.

Keeping score: The Dow Jones industrial average was up 51 points, or 0.3 percent, at 18,101 as of 3:16 p.m. Eastern time. The Standard & Poor’s 500 index gained 15 points, or 0.7 percent, to 2,122. The Nasdaq composite climbed 56 points, or 1 percent, to 5,155.

Greek relief: Eurozone creditors agreed to start discussions about a new bailout package for Greece after that country’s lawmakers approved a strict austerity bill the creditors required. Separately, the European Union agreed to provide a short-term loan to Greece, and the European Central Bank decided to raise the amount of emergency liquidity available to the country’s banks.

The quote: “Some of the red flags in the market have come down, and now the market can look to earnings,” said Kevin Dorwin, managing principal of Bingham, Osborn & Scarborough, a San Francisco-based investment firm.

Netflix soars: Netflix jumped 18 percent, the biggest gainer in the S&P 500, after announcing late Wednesday it added far more subscribers than projected to its service in the second quarter, some 3.3 million. Netflix earnings fell 63 percent for the three-month period, but still beat expectations. Its stock rose $17.73 to $115.86.

Citi beats: Citigroup climbed $1.95, or 3.5 percent, to $58.41 after announcing profits rebounded in the second quarter from the same period a year earlier, when the bank recorded a huge legal settlement with regulators for its role in the housing bubble and financial crisis.

EBay rises: EBay rose $2.23, or 3.5 percent, to $66.67 after announcing earnings that topped Wall Street expectations. The company also said it sold a business that helps develop online sites for retailers as it prepares to spin off PayPal.

Earnings so far: Since the unofficial start to earnings season a week ago, 38 companies in the S&P 500 have reported results and most beat expectations.

That raised hope earnings won’t be as bad as many expected. S&P Capital IQ is still predicting earnings at companies in the S&P 500 will fall 3.8 percent from a year earlier.

One expert’s view: “Just like every earnings season, expectations are low,” said Jack Ablin, chief investment officer of BMO Private Bank. He added, though, “if today is any indication, three-quarters of the companies will beat.”

European rally: Major stock indexes in Europe rose after the news about Greece. Germany’s DAX and France’s CAC-40 each climbed 1.5 percent. Britain’s FTSE 100 gained 0.6 percent.

China gains: The Shanghai Composite Index rose after two days of big drops, climbing 0.5 percent. In other Asian markets, Japan’s Nikkei 225 advanced 0.7 percent and South Korea’s Kospi added 0.7 percent. Hong Kong’s Hang Seng edged up 0.4 percent.

Energy: Benchmark U.S. crude lost 50 cents to close at $50.91 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, rose 46 cents to close at $57.51 a barrel in London.