Strong results bolster Wall Street stocks

WALL Street rebounded yesterday, bolstered by strong corporate results and renewed hope for an agreement in Washington that would avert a default on US debt.

The Dow Jones industrial average was up 210.10 points, or 1.70 per cent, at 12,595.26. The Standard & Poor's 500 Index was up 21.38 points, or 1.64 per cent, at 1,326.82. The Nasdaq Composite Index was up 57.84 points, or 2.09 per cent, at 2,822.95.

Strong quarterly numbers from technology bellwether IBM and beverage giant Coca-Cola boosted technology and consumer shares in the first heavy week of second-quarter results. IBM gained nearly five per cent, leading the Dow’s gainers.

Markets surged after President Obama suggested progress was being made toward a deficit reduction deal. The White House and Congress need to sign a deal that includes an increase in the federal debt ceiling by 2 August or the US could default on its debts.