News of China help for Europe lifts stocks

Stock indexes finished higher Wednesday following a report by Agence France-Presse that China has agreed to invest in Europe's financial rescue fund, which will be used to support struggling countries and banks in the European Union. The Dow Jones industrial average jumped more than 100 points after the report came out in the early afternoon.

Stocks had been mixed as investors weighed stronger earnings from Boeing and Corning with uncertainty about the outcome of a key meeting among European leaders.

Top European officials met in Brussels to discuss how to contain the region's debt crisis, which has festered for two years. One consideration is increasing the power of a financial rescue fund, which Germany's parliament approved shortly before U.S. stock markets opened.

European officials announced a plan after the U.S. markets closed that will require the region's banks to increase their levels of cash to better protect themselves from losses on the Greek bonds they hold. European governments have been pressing the banks to forgive significant amounts of the Greek government's debt.

The Dow Jones industrial average gained 162.42 points, or 1.39 percent, to 11,869.04. Boeing Co. led the way. It rose 4.46 percent after it reported a bigger profit for its latest quarter than analysts expected. It also raised its forecast for 2011 earnings.

The Standard & Poor's 500 index rose 12.95, or 1.05 percent, to 1,242. The Nasdaq composite index added 12.25, or 0.46 percent, to 2,650.67.-- AP