Wall St registers the largest wave of 3 days in 3 months (Reuters)

NEW YORK (Reuters)-Wall Street closed the three-day best carried out in three months on Wednesday, after the Greek Parliament has approved austerity measures to avoid defaulting on its debt.

Optimism about approval of the plan helped the stock market recover some of its losses the past two months. The CBOE volatility index (.VIX), "fear, Wall Street Indicator" fell 9.9 percent to 17.27, its third straight decline.

Greek lawmakers approved a five-year package of spending cuts, tax increases and sales balance sheet with a comfortable margin of 155 votes to 138 in a roll-call vote, delivering a significant victory for embattled Prime Minister George Papandreou.

"Scary entire month of June was healed with these Nice three days we had," said Wayne Kaufman, Chief market analyst at John Thomas financial, New York. "This is a pretty good indication that you have a floor under the market now."

The Dow Jones industrial average (.DJI) earned points 72.73, or 0.60 percent, to 12, 261.42. the & 500 Index (Standard Poors.SPX) rosa 10.74 points, or 0.83%, up to 1, 307.41. The Nasdaq Composite Index (.IXIC) added 11.18 points or 0.41%, 2, 740.49.

Kaufman said S & P 500 reconquest of his low, about 1,295 April was a positive sign, but he noted that the index in the face of resistance to its 50-day moving average at 1.316.

Financials ranked among the best performers of the day. Bank of America Corp. (BAC.N) rose 3 percent to $ 11.14 after it was reached a settlement of $ 8.5 billion with mortgage bond investors. The financial sector index S & P (1.1 Per cent came from GSPF).

(N) of Visa and MasterCard (MA.N) hit 52-week highs and gave the market a Boost late after the Federal Reserve staff recommended almost doubling a proposed cap on amount can charge retailers when you use a debit card. Visa's shares jumped 15 percent to $ 86.57 11.3%, while MasterCard had risen to $ 309.70.

But with the & S P 500 up more than 2% this week, there were signs of weakness in recent gainers such as technology. The Philadelphia semiconductor index (.SOX) dipped 0.1 percent.

Breadth of market, or the difference between the rising stocks and those that fall was close on Nasdaq technology heavy as only slightly more stocks rose then fell.

"The rally has really had a lot of momentum-volume was light yesterday and today that leads into a holiday weekend," said Paul Brigandi, a portfolio manager of Direxion Funds in New York.

Analysts said that fund managers were probably engaged in "window dressing" at the end of the quarter. The process involves adding to the winners from those names of purchase and sale of losers to make portfolios look better. The activity can help drive prices of stocks.

Goods-related shares also moved higher, as the euro climbed and the US dollar index (.DXY) fell against a basket of major currencies. Commodities often move inversely to the dollar as they are priced in u.s. currency on international markets.

The sector index (PHLX oil service.OSX) gained 1.8 percent, encouraged by a gain of 3.7 per cent in Transocean Ltd. (RIG.N) to $ 63.99.

Monsanto Co. (Mon.N) advanced 5 percent to $ 70.26 after its quarterly profits topped estimates, while General Mills Inc. (GIS.N) increased 0.5 percent to $ 37.38 after the cereal maker's fiscal year earnings forecast weaker than Wall Street expected.

In other news companies, BJ's Wholesale Club Inc. (BJ.N) added 4.6 percent to $ 50.29 after it agreed to an acquisition by Leonard Green private equity partners & and another group.

Approximately 7.19 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq-below the daily average so far this year of about 7.57 billion.

Advancing stocks outnumbered declining ones on the New York Stock Exchange in a ratio of about 7-3. On the Nasdaq, rose almost seven stocks fell for every six.

(Reporting by Edward Krudy; Editing by Kenneth Barry)

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