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U.S. stocks rally on earnings reports; Dow Jones up 1.35%

Published 07/13/2010, 10:19 AM
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Investing.com – U.S. stock markets rallied on Tuesday after Alcoa, the largest U.S. aluminum producer and railroad operator CSX reported better-than-expected second quarter earnings, boosting hopes that global growth is strengthening.

During early U.S. trade, the Dow Jones Industrial Average was up 1.35%; the S&P 500 index rose 1.29% and the Nasdaq Composite index advanced 1.12%.

Earlier Tuesday, official data showed that the U.S. posted a larger than expected trade deficit in May, as imports from China outstripped exports.

In a report, the U.S. Bureau of Economic Analysis said the trade balance for May showed a deficit of USD 42.3 billion, after posting a deficit of USD 40.3 billion in April.

Economists had expected the deficit to contract to USD 39.3 billion in May.

Across the Atlantic, European stock markets were also up: France’s CAC 40 rose 1.98%; Germany's DAX climbed 1.92%; Britain's FTSE 100 rose 1.95%; and the EURO STOXX 50 advanced 1.9%.

Earlier in the day, Greece's Public Debt Management Agency sold EUR 1.625 billion of 6-month Treasury bills, its first debt auction since receiving an EU/IMF emergency loan package in May, easing fears over the country's ability to borrow money on the financial markets.

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