Earnings, Europe bolster stock market
A trader works on the floor of the New York Stock Exchange at the end of the first trading session of 2012. (Jan. 3, 2012) Credit: Getty Images
Stocks rose solidly Tuesday after European markets rallied and corporate bellwether Alcoa predicted stronger demand in 2012. The Standard & Poor's 500 index closed at its highest level since July.
European markets soared after Fitch Ratings said it will not downgrade France's credit rating this year. A downgrade for France could scuttle the region's efforts to stem its debt crisis. Europe's bailout fund needs France and Germany to keep their sterling credit ratings so it can borrow at affordable rates.
Kicking off the corporate earnings season, Alcoa said late Monday its fourth-quarter revenue far outpaced analysts' projections. Chief executive Klaus Kleinfeld predicted global aluminum demand will increase 7 percent in 2012. Stronger aluminum demand often signals broader economic growth.
Many analysts had feared weaker corporate profits in the fourth quarter because of Europe's deepening economic troubles and slower growth in the developing world. The solid report from Alcoa seemed to quell those concerns.
The S&P 500 index rose 11.38 points, or 0.89 percent, to 1,292.08. The Dow Jones industrial average rose 69.78 points, or 0.56 percent, to 12,462.47. The Nasdaq index gained 25.94, or 1 percent, to 2,702.50.
Sarra Sounds Off, Ep. 17: Olympics a possibility for Long Beach wrestler? On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra talks with Long Beach wrestler Dunia Sibomana-Rodriguez about pursuing a third state title and possibly competing in the Olympics in 2028, plus Jared Valluzzi has the plays of the week.
Sarra Sounds Off, Ep. 17: Olympics a possibility for Long Beach wrestler? On the latest episode of "Sarra Sounds Off," Newsday's Gregg Sarra talks with Long Beach wrestler Dunia Sibomana-Rodriguez about pursuing a third state title and possibly competing in the Olympics in 2028, plus Jared Valluzzi has the plays of the week.
