Dow rises on earnings, U.S. debt plan

Strong profits and a bipartisan plan to lift the U.S. debt limit drove a stock market rebound Tuesday.

Stock indexes rose after Coca-Cola, IBM and other companies reported better second-quarter earnings.

The indexes added to their gains in the afternoon after President Barack Obama backed a proposal by six senators that would cut debt by $3.7 trillion over the next decade and raise the country's $14.3-trillion debt ceiling.

The Dow Jones industrial average gained 202.26 points, or 1.63 percent, to settle at 12,587.42. That's the Dow's largest one-day jump so far this year.

The ongoing deadlock in Washington over raising the country's borrowing limit and Europe's debt crisis have been weighing on markets this month. The Dow slid five of the previous seven days.

Tuesday's gains turned the three major indexes positive for the month. The Dow and Nasdaq are now up more than 1 percent in July. The S&P 500 is up 0.5 percent. -- AP