Still, there were signs that Europe's troubles persist. Bond investors demanded much higher interest rates from Spain and Italy when they auctioned new debt, suggesting that there is more pain ahead for those debt-strapped countries.
Stovall expects fears about Europe to overshadow earnings results in the coming weeks. After months of strong stock-market gains and little talk about Europe, traders are again nervous that the crisis will boil over, harming the global economy and gumming up the financial system, he said.
"First-quarter earnings are helping to justify the equity market's advance since early October," Stovall said, but "if Europe continues to have its problems, that will outweigh" the corporate earnings news.
Stocks rose consistently from early October through the end of the first quarter on March 31. Trading has since turned volatile. Swings of more than 100 points in the Dow have become common, a contrast to the steady, modest gains of the first three months of the year.The Dow closed up 74.39 points, or 0.6 percent, at 13,001.56. IBM rose solidly after the company said it is raising its quarterly dividend and plans to repurchase $7 billion more of its stock. The S&P 500 rose 5.03 points, or 0.4 percent, to 1,371.97. The Nasdaq composite average fell 8.85 points to 2,961.60. Apple is the Nasdaq's biggest component and the biggest company by market value. As stocks rose, traders sold ultra-safe Treasurys. The yield on the 10-year Treasury note rose to 1.97 percent from 1.94 percent late Monday. Among the other U.S. companies swinging on earnings news: â¿¿ Oilfield services contractor Baker Hughes rose 5 percent after its profit exceeded expectations because of strong drilling activity in Africa. â¿¿ Coach fell 4 percent after the maker of high-end leather goods said results in U.S. department stores were weak, despite stronger sales in China.
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