NEW YORK (AP) — Stocks are rebounding on strong profits from Coca-Cola, IBM and other companies.
The Dow Jones industrial average is up 104 points, or 8 percent, to 12,489 in midday trading Tuesday. The Dow fell five of the previous seven days as Europe’s debt crisis threatened to envelop Italy and as a deadlock continues in Washington over raising the country’s borrowing limit.
The S&P 500 index is up 10 points or 0.8 percent, to 1,315. The Nasdaq composite is up 39 points or 1.4 percent, to 2,804.
The gains pushed the Dow and Nasdaq higher for the month.
IBM Corp. rose 4 percent after the technology company’s results beat analysts’ estimates. Corporate software spending held steady during the quarter.
A jump in housing construction lifted homebuilder stocks.