Dow rises on Europe aid-boost report

The Dow Jones industrial average closed up 52 points Tuesday following a report European leaders are considering more aggressive programs to bail out weaker countries in the region.

Broader market indicators were mixed. The Standard & Poor's 500 index rose 1 point, and the Nasdaq composite edged lower. Materials and health care companies rose the most. Agricultural supplies company Monsanto Co. gained 2.8 percent; drugmaker Pfizer Inc. added 2 percent.

Stocks were stuck in neutral for most of the day after S&P said it might downgrade the AAA rating of Europe's bailout fund. Late in the afternoon the Dow rose up to 117 points after the Financial Times newspaper reported European leaders are considering making more financial aid available to struggling countries.

Investors remain cautious ahead of a summit of European leaders tomorrow and Friday where the main task will be coming up with credible plans for preventing a simmering debt crisis from breaking up the euro, the currency shared by 17 nations. Such a shock would likely cause a deep recession in Europe that would spread through the world economy.

"We are coming to a head in Europe, and it's no longer about the small countries like Greece," said Paul Zemsky, chief investment officer at ING Investment Management.

The Dow closed up 52.30 points, or 0.43 percent, at 12,150.13. Among its top performers was 3M Co., which rose 1.5 percent after it forecast 2012 earnings stronger than many analysts expected. The S&P closed at 1,258.47, up 0.11 percent. The Nasdaq closed at 2,649.56, down 0.23 percent.

U.S. stock indexes have risen sharply from the lows they hit during a Thanksgiving-week drubbing. The S&P 500 is up 8.6 percent since Nov. 25, when it closed at 1,158.67.