Stocks rallied on Tuesday, following upbeat quarterly results from key U.S. companies, a gain in industrial production last month and reports that Spain could be seeking financial assistance from the euro zone.
The Dow Jones industrial average closed at 13,551.78, up 127.55 points or 1 per cent. The broader S&P 500 closed at 1454.92, up 14.79 points or 1 per cent. In Canada, the S&P/TSX composite index closed at 12,407.70, up 177.74 points or 1.5 per cent.
U.S. industrial production rose 0.4 per cent in September, far better than the gain of 0.2 per cent expected by economists.
There was also more good news from the U.S. housing market. 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.
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.
In earnings news, Johnson & Johnson rose 1.4 per cent after its results topped expectations.
Intel Corp. rose 2.9 per cent during regular trading hours, before reporting third quarter earnings of $3-billion (U.S.) or 58 cents a share, beating expectations. In the post market, shares were off 1.3 per cent.
However, Coca-Cola Co. fell 0.6 per cent after its revenues missed estimates. And even though Goldman Sachs Group Inc. reported better-than-expected third-quarter earnings and revenues, its shares lost an early lead and ended the day down 1 per cent.
In other moves, Citigroup Inc. rose 1.6 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.
Apple Inc. rose 2.4 per cent after it sent out press invitation to an event next week that is widely believed to be the launch date for a smaller version of its popular iPad tablet.
Gold rebounded modestly after Monday’s sharp drop. It rose to $1,746.30 an ounce, up $8.70. Gold producers did considerably better, with Barrick Gold Corp. rising 3.2 per cent.