North American stocks enjoyed a broad rally in midday trading on Tuesday, following upbeat quarterly results from key U.S. companies, a gain in industrial production last month and suggestions that Spain could be seeking financial assistance.
Shortly after noon, the Dow Jones industrial average was up 121 points or 0.9 per cent, to 13,545. The broader S&P 500 was up 13 points or 0.9 per cent, to 1453. In Canada, the S&P/TSX composite index was up 147 points or 1.2 per cent, to 12,377.
Citigroup Inc. rose 0.9 per cent after its chief executive, Vikram Pandit, abruptly resigned, just a day after the banking giant reported earnings that had driven its stock higher.
Goldman Sachs Group Inc. rose 0.6 per cent after it reported third-quarter earnings and revenues that topped analysts’ expectations.
Johnson & Johnson rose 1.4 per cent after its results topped expectations, but Coca-Cola Co. fell 0.5 per cent after its revenues missed estimates.
Meanwhile, the National Association of Home Builders reported that builder confidence rose to 41 from 40 last month – in line with expectations but the highest reading since June 2006.
U.S. industrial production rose 0.4 per cent in September, above a gain of 0.2 per cent expected by economists.
In Europe, the U.K.’s FTSE 100 rose 1.1 per cent and Germany’s DAX index rose 1.6 per cent. In Spain, there were reports that the country could be seeking financial assistance in the form of a line of credit, easing concerns about the country’s efforts to stabilize its financial downturn.
Within the S&P 500, the gains were broad but led by economically sensitive areas. Materials rose 1.8 per cent, energy stocks and tech stocks rose 1.4 per cent each and financials rose 0.9 per cent.
Within Canada’s benchmark index, commodity producers led the charge: Energy stocks rose 1.2 per cent and materials rose 1.8 per cent. Financials rose 1 per cent.