U.S. stocks rally on hopes of European rescue agreement

New York, NY, United States (AHN) – U.S. stocks staged a late day rally Tuesday on hopes of a European rescue agreement.

The Dow Jones Industrial Average soared, closing up 180 points. The S&P 500 Index was better by 42 points and the NASDAQ rose more than 26 points.

Shares active in the session included investment banking behemoth Goldman Sachs. The firm reported its only second quarter loss ever since going public, but managed to finish the day up 5.35 points to close at $102. 25. Bank of America, which reported an impressive comeback from the same period a year earlier, jumped over 10 percent to finish at $6.64. Shares of tech giant IBM dropped more than 4 percent despite reporting a 7 percent increase in third quarter earnings. Dragging IBM lower were comments from the company stating that the stronger U.S. dollar has eaten away at its backlog and revenue.

Stocks opened lower Tuesday after the Producer Price Index pointed at inflationary pressures for the U.S. economy. But by mid-afternoon the bulls took over as speculation that an agreement would soon be reached over the mounting euro zone debt crisis.

Oil finished at $88.43 a barrel and gold shined brighter by $10 an ounce closing at $1663.30.

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