July 13th, 2010
06:03 PM ET

Dow adds 147; treasurys slip

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.

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