Investors were euphoric Tuesday, bidding up the major indices and causing the Dow Jones Industrial Average (^DJI +0.83%) to pop 127 points, or nearly 1%, to 13,551. It was the largest single-day gain in more than a month, when on Sept. 13 the markets cheered the Fed's announced implementation of QE3.
The news that it may only be a matter of time before Spain requests a bailout from the EU eased uncertainties about the eurozone crisis and allowed the markets some extra breathing room.
The major company news of the day concerned Citigroup (C +1.57%) CEO Vikram Pandit, who shocked Wall Street by stepping down from the financial giant amid reputed disagreements with the board. Michael Corbat, a nearly-30-year veteran of the company, will step in to replace Mr. Pandit, who's been on the job for five years, leading the company during the depths of the financial crisis. Although, if share prices are a reflection of leadership, perhaps it is best Mr. Pandit try another vocation.
More than 80% of the Dow components gained territory today, led by Intel (INTC 0.06%), which surged nearly 3% in anticipation of its aftermarket earnings announcement, and Caterpillar (CAT +0.84%) which tacked on more than 2.6%. Caterpillar was buoyed by data showing a recovery in industrial production, which had been looking shaky, at best, in August. The Fed reported a steep 1.4% decline in production that month, but numbers coming in today showed a 0.4% increase in September.
The market also applauded results from Goldman Sachs (GS +1.61%) -- which beat analyst expectations on both revenues and net income -- and digested news that the Consumer Price Index (the most frequently quoted measure of inflation) rose more than was expected in September.
Wall Street is off to a great start this week, after a dismal showing last week, when the Dow lost more than 2% of its value. Earnings will continue to set the mood and guide investors moving forward as quarterly results help to paint a picture of what face the economic recovery will take.
