Dow in triple-digit rally

NEW YORK (CNNMoney.com) -- Stocks rallied Tuesday as better-than-expected quarterly results from Merck and Barclays reassured investors, and the weaker dollar boosted commodity prices and shares.

A bigger-than-expected rise in a measure of manufacturing activity in the New York area and some strength overseas added to the momentum.

The Dow Jones industrial average (INDU) rose 170 points, or 1.7%, according to early tallies. The S&P 500 index (SPX) rose 19 points, or 1.8%. The Nasdaq composite (COMP) rose 30 points, or 1.4%.

"Between the good manufacturing report this morning, international markets rising and people wanting to come back in after a holiday weekend, there were plenty of reasons for stocks to rise today," said Kenny Landgraf, principal and founder at Kenjol Capital Management.

The stock advance was broad based, with 28 of 30 Dow components rallying, led by Boeing (BA, Fortune 500), United Technologies (UTX, Fortune 500), Chevron (CVX, Fortune 500), Exxon Mobil (XOM, Fortune 500), 3M (MMM, Fortune 500), Caterpillar (CAT, Fortune 500) and Procter & Gamble (PG, Fortune 500).

Dow component Merck also rose after its quarterly results. Dow financial companies gained too, including American Express (AXP, Fortune 500) and Bank of America (BAC, Fortune 500), as part of a bigger run in the sector after British bank Barclays said profit more than doubled last year.

The KBW Bank (BKX) sector index added 2.9%.

Wall Street managed gains last week, after four weeks of declines, but the advance was tepid amid worries about China's plans to curb lending and the threat of Greece's debt crisis spreading. Those worries were set aside Tuesday as investors focused on some of the stocks that were hit in the recent selloff.

Landgraf said that there had been so much bad news over the last few weeks in terms of issues abroad that most people who were going to sell already did it. Since about the middle of last week, the tone has been better, with buyers starting to come back in at lower levels.

Between rally highs hit on Jan. 19 and the lows of early February, the S&P 500 fell more than 9% and the Dow and Nasdaq lost more than 7%.

U.S. markets were closed Monday for Presidents Day.

Quarterly results: A handful of influential companies report results this week, although the bulk of the reporting period has already passed.

Two Dow companies released results Tuesday morning.

Merck (MRK, Fortune 500) reported higher quarterly revenue that beat estimates on higher earnings that were in line with analysts' estimates. The drugmaker said it won't issue 2010 guidance until April. Shares gained 1%.

Kraft Foods (KFT, Fortune 500) reported higher quarterly earnings that topped estimates on higher quarterly revenue that missed analysts' estimates.

The food maker said the sale of its frozen pizza business to Nestle (NSRGY) will cut 5 cents per share from earnings annually, but its recent buy of British chocolate maker Cadbury will speed up long-term growth. Kraft shares fell 1.5%.

With 379 companies, or 76%, of the S&P 500 having reported, fourth-quarter earnings are on track to have risen 208% from a year earlier, according to Thomson Reuters. Revenues are set to rise 8%. Stripping out the buoyant financial sector, earnings are set to rise 16% and revenues 3%.

Other company news: No. 1 shopping mall owner Simon Property Group (SPG) made a $10 billion hostile bid for troubled rival General Growth Properties. The deal would allow the No. 2 owner of malls to emerge from bankruptcy. Simon shares gained 3.5%.

Manufacturing: The Empire State index, a read on manufacturing in New York State, rose to 24.91 in February from 15.92 previously. Economists surveyed by Briefing.com thought it would rise to 18.

World markets: In overseas trading, European markets ended higher and Asian markets finished mixed.

The dollar and commodities: The dollar fell versus the euro and gained against the Japanese yen.

The dollar's weakness versus the euro gave a boost to dollar-traded commodity prices.

U.S. light crude oil for March delivery rose $2.88 to settle at $77.01 a barrel on the New York Mercantile Exchange.

COMEX gold for April delivery rose $29.80 per ounce to settle at $1,119.80.

Bonds: Treasury prices fell, raising the yield on the 10-year note to 3.67% from 3.69% late Friday. Treasury prices and yields move in opposite directions. The Treasury market was closed on Monday for Presidents Day.

Market breadth was positive. On the New York Stock Exchange, winners topped losers four to one on volume of 640 million shares. On the Nasdaq, advancers beat decliners two to one on volume of 1.47 billion shares. 

Dow gains 100 points as Greek debt fears ebb

NEW YORK (CNNMoney.com) -- Stocks rallied Thursday after the European Union's promise to help debt-ridden Greece eased worries that a default might hurt global markets.

The Dow Jones industrial average (INDU) rose 106 points, or 1%, according to early tallies. The S&P 500 index (SPX) gained 10 points, or 1.4% and the Nasdaq composite (COMP) added 29 points, or 1.4%.

Stocks slid in the morning, but managed to turn up after the European leaders promised to help Greece, although details were scarce.

The announcement gave investors the impetus to push the Dow back above the 10,000 mark, which it has been straddling for the last week.

The easing of concerns that Greece and other debt-ridden nations might default enabled investors to take on more risk, including stocks and commodities. The dollar remained stronger versus the euro and weaker versus the yen.

Gains were broad based, with 28 of 30 Dow stocks advancing, led by Boeing (BA, Fortune 500), Caterpillar (CAT, Fortune 500), Chevron (CVX, Fortune 500), Hewlett-Packard (HPQ, Fortune 500), IBM (IBM, Fortune 500) and 3M (MMM, Fortune 500).

Wary after the retreat: Investors have been cautious after a big selloff in January.

Between the rally high on Jan. 19 and the recent low hit last week, the S&P 500 fell 9.2%, getting close to the 10% decline that is the technical definition of a correction.

Stocks fell Wednesday on concerns about the Greek debt situation, the strong dollar and the Federal Reserve's plan to withdraw some of the trillions of dollars it has used to bolster the nation's financial system.

The Dow, S&P 500 and Nasdaq have all declined the past four weeks, as investors have overlooked improved quarterly profits and some positive signs in the economic reports.

Markets remain vulnerable to a pullback following last year's big rally, in which the S&P 500 gained 23%. Between bottoming at a 12-year low in March of 2009 and the end of the year, the S&P 500 gained 65%.

Debt crisis: European leaders have reached a deal to help debt-ridden Greece avoid defaulting on its debt, although details were not expected to be finalized until Monday.

The intervention marks the first time the 16-nation bloc that shares the euro currency has had to bail out a member since the currency zone was created 11 years ago. The deal is expected to involve some form of loans.

Worries that a Greek default would spread to other debt-ridden European nations and destabilize the euro have dragged on global markets for weeks. Portugal, Italy, Ireland and Spain are also heavily debt-laden.

The concern had caused a flight from risk, with investors dumping the euro, U.S. stocks and commodities, and putting money into the dollar and government debt.

Economy: The number of Americans filing new claims for unemployment fell to 440,000 last week from 483,000 in the previous week. Economists surveyed by Briefing.com thought claims would fall to 465,000.

Continuing claims, a measure of those who have been receiving benefits for a week or more, fell to 4,538,000 from 4,617,000 in the previous week. Economists expected 4.6 million claims.

Economists say as many as 150,000 jobs could be lost in February following back-to-back blizzards in the Northeast region, with the storms keeping people home from work and stalling hiring.

A separate report showed foreclosure filings fell almost 10% in January versus the previous month. However the report from Realty Trac also showed that filings rose 15% from a year earlier.

Company news: Boston Scientific (BSX, Fortune 500) reported a smaller quarterly loss versus a year earlier on higher quarterly sales. The medical device maker also announced a restructuring, including a cut of between 8% and 10% of its workforce. Shares fell 10% in unusually active New York Stock Exchange trading.

Power company FirstEnergy (FE, Fortune 500) said it is buying Allegheny Energy (AYE) in an all-stock deal worth $4.7 billion. Shares of Allegheny rallied 11.8% in active New York Stock Exchange trading.

World markets: European markets ended mixed, with London's FTSE 100 up 0.6% and France's CAC 40 down 0.5%. Asian markets ended higher.

The dollar and commodities: The dollar rallied versus the euro and fell against the Japanese yen.

U.S. light crude oil for March delivery rose 76 cents to settle at $75.28 a barrel on the New York Mercantile Exchange.

COMEX gold for April delivery rose $18.40 to settle at $1,094.70.

Bonds: Treasury prices fell, raising the yield on the 10-year note to 3.71% from 3.68% late Wednesday. Treasury prices and yields move in opposite directions. 

Stocks poised for higher open

NEW YORK (CNNMoney.com) -- U.S. stocks were poised for an upbeat start Thursday, bolstered by a lower-than-expected jobless claims report and a meeting of European leaders would result in a lifeline for Greece.

Dow Jones industrial average, S&P 500 futures and Nasdaq 100 futures were higher.

Futures measure current index values against perceived future performance and offer an indication of how markets may open when trading begins in New York.

U.S. stocks dipped Wednesday amid concerns over the strong dollar and Fed chairman Ben Bernanke's plan to unwind some of the liquidity measures that have helped prop up the financial system.

Speaking before the jobless claims report, Derek Hoffman, chief executive and founder of Wall St. Cheat Sheet, described the gains in futures as somewhat cautious following Wednesday's decline.

"We're treading this 10,000 mark on the Dow," said Derek Hoffman. "We're narrowly within this tight range."

Also, Hoffman said that trading volume could be light, as some Wall Street traders encounter difficulty getting to work following the Wednesday snow storm.

Debt crisis: Concerns about the debt situations of European nations have also weighed on markets recently. But investors have been growing more optimistic that the problem will be addressed.

European leaders were meeting at a summit Thursday in Belgium, where, according to reports, a deal has been reached on an aid package for Greece that could stem problems in other euro zone nations.

Economy: The Labor Department reported that initial jobless claims dropped to 440,000 in the week ended Feb. 6, which was lower than expected and a decline from the prior week.

Jobless claims were expected to total 465,000 in the week ended Feb. 6, according to a consensus of economists' forecasts from Briefing.com. Claims totaled 483,000 the prior week, according to revised figures.

Earnings:

PepsiCo (PEP, Fortune 500) reported that fourth-quarter earnings of 90 cents per share, matching expectations from a consensus of analysts surveyed by Briefing.com.

PepsiCo's stock barely budged in pre-market trading.

World markets: Stocks in Europe were mixed in midday trading, with London's FTSE making slight gains, but with declines in Frankfurt's XETRA-DAX and Paris' CAC 40. Asian shares finished the session with gains.

Cash and bonds: The dollar rose against the euro but slipped against the yen and the pound. The price of the 10-year note rose, pushing down the yield to 3.71%.

Oil and gold: The price of oil rose 29 cents to $74.82 per barrel. The price of gold jumped $7.50 per ounce to $1,083.30.