US stocks jump after strong profits; Dow up 200

Stocks stormed higher Tuesday after promising signals about the profitability of U.S. companies and a strong debt auction by Spain. The Dow Jones industrial average headed for its biggest gain in a month..European stocks had their best day in four months after Spain, the latest flashpoint in the European debt crisis, attracted strong investor interest at an auction of two-year debt..Spain's borrowing costs fell, as measured by the yields on Spanish bonds being traded in the market. Those yields had risen in recent days closer to levels that might force Spain to seek an international bailout.."There's no doubt that gave the market a second wind," Anthony Chan, chief economist with J.P. Morgan Private Wealth management, said of the debt auction. "The market is reassessing and feeling a little better.".In the U.S., Coca-Cola pushed the Dow Jones industrial average higher after the company said its first-quarter profit was better than Wall Street analysts had forecast..The Dow climbed more than 200 points, and Coke stock leapt 2.7 percent. Despite strong overall gains, the Dow has closed 200 points higher only once this year — on March 13, when it rose 218 points..Goldman Sachs and Johnson & Johnson also posted strong quarterly results, but traders did not appear surprised, and their stocks were roughly flat..The Standard & Poor's 500 index added 20 points to 1,389. The rally was broad, lifting all 10 of the S&P 500's industry groups..The Nasdaq composite index soared 52 to 3,040. It was the best day for the Nasdaq in more than three weeks, a day after the falling price of Apple stock pulled the tech-heavy index to a steep loss. Apple bounced 3.2 per cent after five straight days of losses..Early Tuesday, the Spanish government sold more than €3.2 billion ($4.2 billion) in short-term debt, more than had been expected. The yield on Spain's 10-year government bond fell to 5.86 per cent from 6.10 per cent early Monday, a sign of improving confidence in the country's finances..Italy's benchmark stock index rose 3.7 percent. France's and Germany's gained 2.7 per cent. The broad STOXX 50 index of European shares rose 2 per cent, the most since November..In the United States, the rally followed a batch of mixed economic news. The number of permits requested by homebuilders for future projects reached a 3½-year high, an indication that the housing market might stop weighing down the economy..But builders broke ground on homes at a slower pace in March..Factory output fell after four strong months of gains.

US stocks jump after strong profits; Dow up 200

The government and RBI have agreed on rate cuts to stimulate growth. Or have they?

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