) -- Stocks rallied Tuesday with each of the major averages rising more than 2%. Energy and the industrial technology sectors were leaders, as the market also got a boost from solid economic data and a strengthened euro.


Dow Jones Industrial Average

closed 214 points higher, or 2.1%, at 10,405. The

S&P 500

, which surpassed its 200-day moving average, added 26 points, or 2.4%, to 1115 and the


went ahead by 62 points, or 2.8%, at 2306.

"I think this is a continuation of the re-risking trade," said James Dailey, senior portfolio manager of the Team Asset Strategy Fund.

"We had such a shock coming out of the April highs and it really took the form of a big de-risking trade," Dailey said, pointing to higher prices on gold and U.S. Treasuries while commodities and emerging markets stocks declined. "This looks a lot like short-covering because sentiment did get pretty bearish and we suspect there could be a continuation of a short-covering rally for some time. It could take weeks or months for the market to form a more complicated top."

Overseas on Tuesday, Hong Kong's Hang Seng increased 0.05%, and Japan's Nikkei rose 0.8%. The FTSE in London climbed 0.3% higher, and the DAX in Frankfurt was up by 0.8%.

>>The Economy

>>Company News

>>Commodities and the Dollar


The Economy

New York manufacturing activity strengthened in June, with an Empire State Manufacturing index reading of 19.57, which was roughly in line with economists' projections for a reading of 20; that compares with May's level of 19.11.

The Department of Labor said May import prices fell 0.6%, compared with an upwardly revised increase of 1.1% in April. The decline marked the largest monthly drop since July 2009 and was the result of weaker fuel prices. Excluding oil, import prices rose 0.5%. Export prices, meanwhile, rose 0.7% in May, after rising by 1.2% in April. Excluding agriculture, export prices ticked 0.6% higher in May.

The National Association of Home Builders showed that homebuilders' confidence weakened in June as its housing market index lost 5 points to came in at 17.

Late in the day, the American Petroleum Institute said crude oil supplies rose by 579,000 barrels last week, according to


. Many had expected a drawdown of 1.75 million barrels, according to a survey conducted by Platts.


>>Company News

>>Commodities and the Dollar


Company News

All 30 Dow components finished in positive territory, with


(MSFT) - Get Report


American Express

(AXP) - Get Report



(BA) - Get Report



(CAT) - Get Report

leading the blue chip average higher.

Boeing, in particular, added 4.1% after releasing a statement today saying it was

upping the production rate on its 737 program from 34 planes a month to 35 by the beginning of 2012.

Stockpickr Tools Beat the Dow Challenge

Shares of

Best Buy

(BBY) - Get Report

lost 6.1% after the company missed quarterly profit and sales estimates. The first-quarter report showed

weak TV sales and lower demand for games, videos and music although demand for notebook computers, mobile phones and appliances was strong.

Casey's General Stores

(CASY) - Get Report

hiked its quarterly cash dividend by nearly 18%, to 10 cents, from 8.5 cents. The stock, however, traded 0.4% lower at $35.80.

Shares of


(NUE) - Get Report

added 0.5% after the company gave cautious second-quarter guidance because of a higher-than-expected LIFO charge.

The Swiss parliament approved a treaty with the U.S. that will turn thousands of files on suspected tax cheats over to U.S. authorities. The government hopes the move will help

TheStreet Recommends


(UBS) - Get Report

avoid prosecution. UBS shares traded 5.7% higher at $13.82.

Credit rating agency Fitch slashed its rating on


(BP) - Get Report

by six notches to triple-B from double-A, citing heftier estimates for the severity of the Gulf of Mexico oil spill and demands from lawmakers to devote $20 billion for an escrow account to cover damages. Meanwhile, executives from

Exxon Mobil

(XOM) - Get Report



(COP) - Get Report


Royal Dutch Shell




(CVX) - Get Report

attempted to separate themselves from BP's actions in testimony offered on Capitol Hill today, according to

The Associated Press.

President Obama is also scheduled to brief the nation this evening on the Gulf spill relief efforts. After falling early, BP rebounded to finish 2.4% higher at $31.39.

British Sky Broadcasting

( BSY) turned down a buyout offer from

News Corp.

(NWS) - Get Report

, saying the offer undervalues the company.

Capital One Financial

(COF) - Get Report

said its annualized net charge-off rate fell to 9.48% in May, from 9.68% in April, signaling that consumers may be facing less pressure.

JPMorgan Chase

(JPM) - Get Report

also reported a drop in

credit card charge-offs, which helped shares climb 2.5% today.

Shares of


(CBOE) - Get Report

soared over 12% higher in their debut after pricing at $29 each.


>>The Economy

>>Commodities and the Dollar


Commodities and the Dollar

Crude oil for July delivery added $1.82, to settle at $76.94 a barrel.

Elsewhere in commodity markets, the August

gold contract settled $9.90 higher at $1,234.40 an ounce.


dollar was trading lower against a basket of currencies, with the

dollar index down by 0.7%.


>>The Economy

>>Company News



The benchmark 10-year Treasury was losing 13/32, raising the yield to 3.308%.

The two-year note was slipping 1/32, increasing the yield to 0.758%. The 30-year bond was down 21/32, strengthening the yield to 4.223%.

--Written by Melinda Peer and Sung Moss in New York



>>The Economy

>>Company News

>>Commodities and the Dollar