Stocks Rally for Second Day of Gains
10/16/2012
Hemera/Thinkstock(NEW YORK) -- Stocks on Tuesday rallied for a second day on more earnings reports that exceeded expectations, as well as new confidence in home construction.
The Dow closed up 1 percent -- a 128-point jump -- to 13,551.78. The Nasdaq and S&P gained 37 and nearly 15 points, respectively.
A better-than-expected earnings report from Johnson & Johnson helped to push the Dow higher. Johnson & Johnson shares were up 1.38 percent Tuesday. Though J&J's profit dropped from a year ago, its third-quarter revenue beat forecasts while the company improved its 2012 outlook.
The National Association of Home Builders says confidence among builders is its highest in six years. The trade group says better-qualified buyers are taking a more serious look at new homes, but many are continuing to struggle with challenges qualifying for mortgages.
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