A look at highlights from the day's business news:
Stocks rally on Alcoa profit, Greek auction
Stocks surged Tuesday as investors welcomed Alcoa's better-than-expected profit report and a well-received auction of Greek debt that lifted global markets and strengthened the euro.
After the close, Intel reported higher quarterly sales and earnings that
rose from a year ago and topped expectations. It was the company's best quarter
ever, reflecting strong demand from business customers.
The Dow Jones industrial average added 147 points, or 1.4 percent. The S&P 500 index rose 16 points, or 1.5 percent, and the Nasdaq composite jumped 44 points, or 2 percent.
After the closing bell Monday, aluminum giant Alcoa reported higher quarterly sales and earnings that topped estimates, beginning the quarterly reporting period on a positive note. The Dow component also estimated that aluminum demand would rise by 12 percent this year, versus the previous forecast for a rise of 10 percent.
Profits are expected to have risen about 27 percent in the second quarter versus
a year ago, while revenue is expected to have jumped 9 percent. But investors will focus more on what companies say about the second half of the year.
Treasurys slip ahead of auction
Treasury prices fell Tuesday, as the government offered $21 billion in 10-year notes and better-than-expected corporate results renewed investor confidence in riskier assets.
The benchmark 10-year note was down 11/32 to 103-11/32 and its yield fell to 3.11 percent from 3.02 percent late Monday. Bond prices and yields move in opposite directions.
The two-year note was edged down 1/32 to 99-30/32 with a yield of 0.67 percent,
while the fiev-year note lost 6/32 to 99-30/32 and yielded 1.89 percent. The 30-year bond fell 21/32 to 104-26/32 with a yield of 4.10 percent.
Demand for the safety of U.S. government debt faded as investors regained confidence after Alcoa's better-than-expected earnings report.
CNNMoney.com reporters Alexandra Twin, Annalyn Censky and Hibah Yousuf contributed to this report.
New York Yankees owner George Steinbrenner died Tuesday of a massive heart attack. Often tempestuous but always entertaining, "The Boss" rebuilt the Yankees into a sports empire and became a pop-culture icon in his own right. We look back at some of the best quotes - good and bad – from Steinbrenner and those who knew him.
"I walked in and saw flowers on every desk. Freshly cut flowers. I said, 'What the hell is this? Is it Flowers Day? Is it Secretary's Day?' Somebody said, 'Isn't that wonderful? Mr. Burke does this every day for us.' [Former Yankee president] Mike Burke is a guy who I admired tremendously. He was a real heartthrob type of guy. Everybody liked him. I loved him, but for what I wanted, he didn't fit with me. When I saw the flowers, that was the trigger. I got involved."
– Steinbrenner in an interview with Daily News. He did not plan to get involved in the daily operations of the Yankees when he bought it in 1973.
"Call us babies, call us whatever you want. If you don't treat me with respect, I don't want to work for you."
– Yankee first baseman, Don Mattingly after the Yankees’ third loss in four games to the Mariners, when he lashed out in the locker room for the constant criticism. Mattingly did not specifically mention Steinbrenner though.
“Move over! This is how you play the organ! You go walk around the stadium and see how the sound is and then come back here.”
– Steinbrenner said, startling the organist Eddie Layton who was then shoved aside while practicing at an empty stadium.
Time.com: Top 10 George Steinbrenner Moments
Federal officials announced indictments Tuesday against four police officers and two supervisors in the investigation surrounding the post-Hurricane Katrina deaths of civilians on New Orleans' Danziger Bridge, federal law enforcement officials confirmed to CNN.
At least three New Orleans police officers were in FBI custody Tuesday afternoon, an attorney for one of them confirmed. Kenneth Bowen, Anthony Villavaso and Robert Gisevius surrendered to authorities and are expected to make an initial court appearance later Tuesday.
U.S. Attorney General Eric Holder plans an afternoon news conference in New Orleans, Louisiana.
The frontier territories in the mountainous north of Pakistan are used to terrorism. But U.S. and Pakistani officials are looking with unease at its spread to the country’s most important and populous province: Punjab.
This month, an attack on a Sufi shrine in Lahore, the capital of Punjab, killed at least 40 people and injured nearly 200. It was the latest in a series of deadly gun and bomb attacks in Lahore. Last month, Taliban attacked two mosques of the Ahmadi sect (which is regarded as non-Muslim by Sunni extremists in Pakistan). Some 80 worshipers were killed.
The Taliban denied that they were responsible for the attack on the shrine, but Pakistani officials speak of a new loose alliance of militant groups emerging, one they call the Punjabi Taliban.
The interior minister, Rehman Malik, said, “Factually speaking, the proscribed organizations are of course from Punjab, most of them.”
He was referring to 17 banned organizations that have their origins and headquarters in Punjab – organizations like Lashkar-e-Jhangvi, which has links with al Qaeda, and Jaish-e-Mohammed. And some of the groups have become influential in mainstream politics.
And that's a worry. Punjab's stability is vital: It is the country's breadbasket, its industrial heartland, home to more than half the country's population and most of its military and political establishment.
But in Pakistan, nothing is simple. The federal government in Islamabad plays up the threat of the Punjabi Taliban because it says the main opposition party, which runs Punjab, has colluded with extremist organizations. Malik belongs to the governing Pakistan People’s Party; the chief minister of Punjab is Shabaz Sharif of Pakistan Muslim League. Sharif throws the same accusation back at politicians of the PPP and complains of a lack of cooperation from the military in dealing with outlawed groups.
Even the Lahore police chief gives conflicting signals about the threat facing his men, who have been frequent targets of suicide bombings.
“This is a very wrong notion," Aslam Tareem said, “the impression that there is a Punjabi Taliban, which means there are some camps and training camps in the south of Punjab ... but there are not.”
But moments later, Tareem acknowledged the danger posed by Punjabi Taliban. He says they are trained by Taliban in the lawless tribal border regions, experienced fighters and bomb-makers. And he says his men have recently recovered a staggering 6,000 kilograms – more than 6 tons – of explosives.
Moderate clerics in Punjab want decisive action against extremists before the situation gets out of control. Mulana Raghib Naeemi, whose father was killed last year for speaking out against the Taliban, says that just issuing a banning order against militant groups serves no purpose.
“[The] government should ban terrorist groups completely, not only on the name but also on their working, on their leaders and on their literature,” he said.
After the shrine bombing, Sufi leaders also demanded immediate action to tackle Sunni militancy in Punjab and the resignation of one Punjab minister who had received support from the militant Sipah-e-Sahaba group during an election campaign this year. The group was banned in 2002.
Our own reporting suggests that Sipah-e-Sahaba operates freely. We caught up with its Secretary-General Khadim Hassain Dhellon.
“I have hundreds of thousands of followers,” he said. “If I'm arrested, they'll join the Taliban in the tribal region.”
He doubts he will be detained, claiming to have helped some of the country's most powerful politicians get elected by campaigning with them and telling his supporters to vote for them.
The fear among observers here is that as the political parties score points and exchange accusations, the militant groups will continue to grow in Punjab. For months, the government failed to take decisive action against the Taliban as they gained strength in the mountains near the capital Islamabad. When it finally sent the army in, the battles displaced hundreds of thousands of people. That sort of offensive in the densely populated rural plains of Punjab is not possible. Nor is it one that army commanders, their forces already stretched in the frontier regions, would entertain.
[Updated at 1:39 p.m.]
The so-called "barefoot bandit," Colton Harris-Moore, pleaded guilty in
a Bahamian court Tuesday to a charge of illegally landing a plane, and was sentenced to three months in jail or a $300 fine, police said.
A deportation order was also entered, said police spokeswoman Sgt.
[Posted at 11:43 a.m.] A teenage fugitive known as the "barefoot bandit" was set to be
arraigned Tuesday before the Bahamas chief magistrate on a variety of charges, authorities said.
Colton Harris-Moore, 19, faces charges including a weapons charge, said Royal Bahamas Police Force spokeswoman Sgt. Chrislyn Skippings. She said she was awaiting court documents to find out the specific charges.
Harris-Moore is set to appear at 12 p.m. ET before Chief Magistrate Roger Gomez. At that hearing, the charges against him will be read, Skippings said.
Harris-Moore was taken into custody on Harbour Island in the Bahamas
early Sunday. He is sought in a string of home and airport break-ins along with thefts of vehicles. He faces charges in Washington state in the theft of an aircraft, and police have said they believe he stole a plane in Indiana and flew it to the Bahamas, where it was found off Abaco Island.
The teen has been on the run since he escaped from a juvenile halfway house in Renton, Washington, in 2008. The FBI had offered a $10,000 reward for information leading to his arrest.
"At this point, we're not aware of any requests from the U.S. government or any government for extradition of the young man," said Quincy Parker, spokesman for the Bahamas embassy in Washington. Such a request must be made, he said. "That's how it works. It's not a matter of police force to police force."
David Ortiz has officially put a season-starting slump behind him.
Hitting just .143 with one home run in April, the Red Sox designated hitter went from “first-month chump to Home Run Derby champ,” writes SI.com’s Joe Lemire as Big Papi topped the Marlins’ Hanley Ramirez 11-5 in the finals; Ortiz finished with 32 total home runs.
With the MLB All-Star Game prelude in the books, all eyes will be on the 81st Midsummer Classic in Angels Stadium of Anaheim as the National League tries to break through for its first win in 13 years (8 p.m. FOX).
It's not your typical magazine. The layout is conventional enough, the typeface bold; there is more than a smattering of high quality photographs; and the graphic designers at al Qaeda in the Arabian Peninsula have been given free rein. But then in the "table of contents" you're invited to read "How to Make a Bomb in the Kitchen of Your Mom" [note the American spelling.]
This is the first edition of Inspire – supposedly the online house magazine of al Qaeda in the Arabian Peninsula. And it's certainly topical. It contains a long piece condemning western governments for moving to ban the full-face veil in public – just as the French National assembly passes such legislation. FULL POST
France's lower house of parliament Tuesday overwhelmingly passed a ban on any veils that cover the face - including the burqa, the full-body covering worn by some Muslim women.
The vote was 335 to 1. The measure must still go to the French Senate before it becomes law. The Senate is expected to vote on it in the week of September 20.
Amnesty International immediately condemned the vote. "A complete ban on the covering of the face would violate the rights to freedom of expression and religion of those women who wear the burqa or the
niqab in public as an expression of their identity or beliefs," said John
Dalhuisen, Amnesty International's expert on discrimination in Europe.
AIDS is losing its stranglehold on a key demographic in Africa, according to a U.N. report released Tuesday, and it appears the driving force behind the trend is common sense.
People between the ages of 15 and 24 are among the hardest-hit by sexually transmitted infections, and 80 percent (4 million) of young HIV patients live in sub-Saharan Africa, UNAIDS reports.
Polls show that AIDS is among the foremost concerns of citizens living in many African countries, and if the U.N. data are accurate, teens and young adults in these countries have decided to reverse the trend.
“Young people are leading the prevention revolution by taking definitive action to protect themselves,” the report states. “The impact: HIV prevalence among young people is falling in 16 of the 25 countries most affected by AIDS.”
Among the nations leading the way – and raising hopes that they can slash their countries' 1994 AIDS rates among young people – are Botswana, Ivory Coast, Ethiopia, Kenya, Malawi, Namibia and Zimbabwe.
Hall of Fame football linebacker Lawrence Taylor has pleaded not guilty
to charges that he raped a 16-year-old girl in Rockland County, New York, a court official told CNN.
The former New York Giants star was arraigned on Tuesday before Rockland County Judge William K. Nelson.
Taylor has been charged with third-degree rape for allegedly engaging in sexual intercourse with someone younger than 17 and third-degree patronization for allegedly paying the underage victim $300 to have sex. He is free on $75,000 bail.
[Updated at 9:58 a.m.] New York Yankees owner George Steinbrenner has died, Steinbrenner's spokesman said.
“It is with profound sadness that the family of George M. Steinbrenner III announces his passing," a statement from his family said. "“He was an incredible and charitable man. First and foremost he was devoted to his entire family – his beloved wife, Joan; his sisters, Susan Norpell and Judy Kamm, his children, Hank, Jennifer, Jessica and Hal; and all of his grandchildren.
“He was a visionary and a giant in the world of sports. He took a great but struggling franchise and turned it into a champion again.”
The team has seven World Series trophies – 1977, '78, '96, '98, '99, 2000 and '09 earned under Steinbrenner's ownership since 1973.
"Owning the Yankees," Steinbrenner once said, "is like owning the Mona Lisa."
[Posted at 9:29 a.m.] New York Yankees owner George Steinbrenner has suffered a massive heart attack, according to CNN affiliate reports.
Steinbrenner was rushed to St. Joseph's hospital in Tampa, Florida, and his condition is not known, the station reported.
Steinbrenner turned 80 on July 4.
The team has seven World Series trophies – 1977, '78, '96, '98, '99, 2000 and '09 earned under Steinbrenner's ownership since 1973.
Steinbrenner is the longest-tenured owner in Major League Baseball, having served as principal owner since purchasing the club on Jan.3, 1973, according to the Yankees website. Over that time, the Yankees have won 11 American League pennants.
Steinbrenner has been in failing health in recent years and his son Hal is the managing partner of the team.
Steinbrenner bought the Yankees for $10 million and under his ownership they have become the most valuable team in U.S. professional sports, with Forbes.com estimating its value at over one-billion dollars.
He also was suspended from baseball twice, once after being indicted for allegedly making illegal campaign contributions to Richard Nixon, and once after paying a gambler to dig up dirt on one of his own players, Dave Winfield.
This story is developing. We'll bring you the latest information as we get it.
Ugandan officials have recovered what they've alternately described as an explosives-laden belt or a vest in a trashcan at a nightclub in a suburb of Kampala, the chief of police said Tuesday.
Maj. Gen. Kale Kayihura, the chief of police, said the device - found Monday - was impregnated with ball bearings and was similar to those found at two sites where blasts killed at least 74 people over the weekend.
The device was found along with a detonator and what looked like a laptop bag, Kayihura said.
When a journalist asked him whether this meant there was a third attack planned, he said, "It's possible there was."The police chief said that his office was working with international agencies - but would not specify who. He
also would not say how many people have been arrested in connection with the attack and what their nationalities were. FULL POST
A typhoon in the Philippines is on track to make landfall Tuesday evening and has already stranded passengers in a port city, government officials said.
Tuesday afternoon, officials reported that the center of Typhoon Conson was estimated to have reached maximum sustained winds of 120 kph (75 mph) near the center and gusts of up to 150 kph (93 mph).
The storm is expected to move toward Isabela, Aurora, Quirino, Polillo Island, Camarines Norte and Catanduanes. The rest of Northern and Central Luzon will have rains and gusty winds.
Gulf oil disaster - BP plans to begin testing the new cap on its ruptured deepwater well Tuesday – a move that officials hope will be a step on the way to stopping oil from gushing into the Gulf of Mexico. The process could take anywhere from six hours to two days, or longer if BP extends it.
Officials say several scenarios are possible: The cap could contain all the oil; the cap could contain some of the crude while ships on the water's surface collect the rest; or, under a worst-case scenario, there could be more damage to the well's casing, meaning that capping the well would not stop the oil from flowing.
The missing Iranian researcher, whom Tehran claimed the CIA abducted, has taken refuge in the Pakistani Embassy in Washington. “He has requested to be sent back to Iran quickly," Iran's semiofficial news agency Mehr said Tuesday.
Amiri, a researcher at Tehran's Malek Ashtar University, mysteriously disappeared in June 2009 while on a religious pilgrimage to Saudi Arabia, according to Iranian media reports. Iran has accused the United States of involvement in Amiri's disappearance, saying the researcher was taken to force him to give up data about Tehran's nuclear program.
The U.S. State Department has denied that allegation but has been tight-lipped on whether Amiri defected.
Last month, two videos surfaced on the internet of a man claiming to be Amiri in which he said he had escaped from U.S. agents and was hiding in Virginia. In one of the videos, the man again said that he was brought against his will to the U.S. and fears he will be discovered and re-arrested.
"I am Shahram Amiri, the son of the Islamic Republic of Iran, who with God's help succeeded in running away from the U.S. security agents in the state of Virginia. I am [temporarily] at a safe place and I am trying to do this video, but it is quite possible that I may shortly be again arrested by American security agents."
CNN could not independently verify the authenticity of the videos nor the identity of the man in them.
An update from London on some of the international stories we expect to develop on Tuesday:
Uganda bombings - Ugandan officials have recovered an explosives-laden belt from a residential area as the investigation continues into a trio of bombings that killed at least 74 people. Read the full story
Cuba prisoners - The first group among 52 Cuban political prisoners to be freed is expected to arrive in Spain on Tuesday. A group of prisoners left the island nation on a commercial flight on Monday night.
A 14-year-old cruise passenger was killed in a crossfire Monday as she rode on a tour bus in the U.S. Virgin Islands, police said.