Red Bluff Daily News

February 10, 2010

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NEW YORK (MCT) — U.S. stocks rallied on Tuesday, with the Dow average notching its best day in five weeks, as investors focused on reports Germany was con- sidering a rescue package for debt-strapped Greece. The Dow Jones Indus- trial Average finished up 150.25 points, or 1.5 per- cent, at 10,058.64, its best one-day gain in both point and percentage terms since Jan. 4, the year's first trad- ing session. At its intraday high just after midday, the blue-chip average posted a gain of 231 points. "It seems unlikely that the European leadership will leave Greece to fend for itself," said Alan Gayle, senior investment strategist at RidgeWorth Investments in Richmond, Va. "I think the market is more confident that Greece is going to get some sup- port." The Dow was led by a 5.4 percent jump in Cater- pillar Inc., which was upgraded along with sever- al other industrial names by analysts at Morgan Stanley. Coca-Cola Co. was also a big gainer among the blue chips, up 2.6 percent after reporting a 55 percent gain in fourth-quarter prof- it. The rally provided a welcome break for investors who had watched major indexes retreat by as much as 8 percent from their recent highs coming into Tuesday's action. The Nasdaq Composite Index rose 1.2 percent. The S&P 500 ended up 1.3 percent, helped by gains in every sector, and led by materials and ener- gy stocks, as gold futures climbed and crude oil futures topped $73 a bar- rel. Commodities were boosted by a retreat in the dollar, which often falls out of favor when investors are in the mood to take on risk. In recent action, one euro cost $1.3789, up from $1.3660 late Monday. The broad U.S. Dollar Index was off 0.7 percent. Trea- surys dropped, with the 10-year note off 21/32 to yield 3.641 percent. Supporting gains, media reports said Ger- many was working on a plan to help Greece, whose high government deficits have sparked worries about a reprise of 2008's global financial crisis. The Wall Street Journal reported that Germany is considering a plan with its European Union partners to offer Greece and other troubled euro zone mem- bers loan guarantees in an effort to calm market fears of a default. Read more on Germany and Greece. It followed a report in The Financial Times Deutschland that Germany was engaged in efforts to help Greece. Concerns over Greece's debt load, and that of other weak members of the 16- nation euro zone, had weighed on U.S. stocks for weeks. Greece's benchmark index jumped 5 percent, although a pan-European benchmark ended the day unchanged. Among stocks in focus, Electronic Arts Inc. dropped 8.8 percent after the video-game maker pro- jected a disappointing forecast for the current quarter. 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