Dow Surges 170 Points On Earnings Reports

Summary


NEW YORK -- Signs that the economy is indeed strengthening gave investors a surge of optimism and sent stocks sharply higher. The Dow Jones industrials soared almost 170 points Tuesday on upbeat earnings reports and corporate deals. Investors who have been anxious in recent weeks about economic problems overseas were able to put aside their concerns for the time being. They focused instead on the domestic economy.

In the U.S., Kraft Foods Inc. and apparel retailer Abercrombie & Fitch reported earnings that beat expectations, while drugmaker Merck & Co. said profits jumped after the company bought its longtime partner Schering-Plough Corp.

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Dow Surges 170 Points On Earnings Reports

Earnings reports over the past month have mostly come in better than expecte...

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