The markets are supported by strong data on US Federal budget -$129.4b (slightly better than expected -140.3b).

Earlier the stocks erased some losses after BofA chief Moynihan said that conditions at the bank and and in the country are much better than they were four years ago, when the financial crisis hit, during a call hosted by investor Bruce Berkowitz of Fairholme Capital Management.

But investors are still worried about the Europe's ongoing sovereign debt crisis.