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U.S. stocks surge with tech companies taking the lead

Specialist Charles Boeddinghaus works on the floor of

Specialist Charles Boeddinghaus works on the floor of the New York Stock Exchange on Wall Street on Friday, May 13, 2016. Photo Credit: AP / Richard Drew

U.S. stocks are jumping Tuesday afternoon as technology companies like Apple and Microsoft make big gains. Rising interest rates are giving bank stocks a lift. European indexes also climbed.

KEEPING SCORE: The Dow Jones industrial average rose 212 points, or 1.2 percent, to 17,704 as of 1:22 p.m. Tuesday on Wall Street. The Standard & Poor’s 500 index picked up 28 points, or 1.3 percent, to 2,075. The Nasdaq composite index surged 89 points, or 1.9 percent, to 4,854.

BANK ON IT: Bond prices fell. The yield on the 10-year U.S. Treasury note rose to 1.87 percent from 1.84 percent. When interest rates go up, as they have been recently, banks can make more money from lending. JPMorgan Chase climbed $1.06, or 1.7 percent, to $64.53 and Bank of America gained 20 cents, or 1.4 percent, to $14.67.

BIG NAMES: Tech stocks rose. Apple picked up $1.55, or 1.6 percent, to $97.98 and Alphabet, Google’s parent company, added $14.39, or 2 percent, to $731.64. Microsoft rose $1.56, or 3.1 percent, to $51.59.

MONSANT-NO: Agribusiness giant Monsanto rejected an offer from German conglomerate Bayer worth $62 billion, or $122 per share. However Monsanto said it’s open to talks with Bayer about a possible sale. The stock rose $2.02, or 1.9 percent, to $108.02.

DEAL OFF: Fertilizer maker CF Industries ended a deal to buy OCI’s distribution networks for about $8 billion. CF planned to reincorporate in the U.K. as part of the deal, which would have reduced its tax bill, but the company said new Treasury Department rules made the combination less appealing. CF Industries will pay OCI $150 million for calling off the deal. CF Industries shed $1.75, or 5.8 percent, to $28.11.

HOMECOMING: Home builder Toll Brothers reported better first-quarter results than analysts expected, and the company raised its annual projections for home prices and sales. The stock gained $2.18, or 8.1 percent, to $29.28.

Other homebuilders also climbed after the Commerce Department said sales of new homes reached their highest level in eight years in April. Beazer Homes USA added 59 cents, or 8.2 percent, to $7.79 and PulteGroup rose 90 cents, or 5.1 percent, to $18.72.

GOING TO DISNEY WORLD: Streaming video company Netflix jumped after it said it struck deal with Disney. Starting in September, Netflix will have exclusive U.S. rights to new movies from Disney, Marvel, Lucasfilm and Pixar. Netflix stock jumped $3.63, or 3.8 percent, to $98.52.

MORE RETAIL PAIN: Electronics retailer Best Buy said its quarterly sales kept falling and its outlook was weak. That made Best Buy the latest retailer to disclose disappointing quarterly results. Its stock lost $1.98, or 6 percent, to $31.04.

Shoe and accessories retailer DSW cut its outlook, saying it expects weaker sales this year. That came after the company reported disappointing results for its first fiscal quarter. The stock gave up $2.46, or 11.3 percent, to $19.27.

Home decor retailer Kirkland’s results fell short of estimates, and its stock lost 1 cents, or 1.1 percent, to $13.07.

TWITTER TRIPPED UP: Twitter announced a series of format changes that make its 140-character limit a bit more flexible. That might make Twitter more appealing to new users. The social media service said that in a few months, photos, videos and other media won’t count toward its character limit. However it didn’t abolish that limit entirely, as some had expected. The stock declined 31 cents, or 2.2 percent, to $14.10.

OVERSEAS: France’s CAC 40 added 2.5 percent while Germany’s DAX gained 2.2 percent. In Britain the FTSE 100 rose 1.3 percent. Japan’s benchmark Nikkei 225 fell 0.9 percent as the yen continued to strengthen, hurting Japanese exporters. South Korea’s Kospi edged down 0.9 percent. Hong Kong’s Hang Seng rose 0.1 percent.

ENERGY: Benchmark U.S. crude picked up 60 cents, or 1.2 percent, to $48.68 a barrel in New York. Brent crude, used to price international oils, rose 41 cents to $48.76 a barrel in London.

CURRENCIES: The dollar rose to 110.04 yen from 109.19 yen. The euro slipped to $1.1149 from $1.1221.

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