Stocks Jump on Reports of Strong Profits

U.S. stocks are closing sharply higher after promising signals about the profitability of U.S. companies and a strong debt auction by Spain.

European stocks had their best day in four months after Spain, the latest flashpoint in the European debt crisis, attracted strong investor interest at an auction of two-year debt.

Coca-Cola leapt after posting strong quarterly earnings. Goldman Sachs and Johnson & Johnson also boosted their net income.

The Dow rose 194 points to 13,115, its best day in a month. The S&P 500 closed up 21 at 1,390. The Nasdaq composite index soared 54 to 3,042, its biggest point rise in three weeks.

About 10 stocks rose for every three that fell on the New York Stock Exchange. Volume was light at 3.4 billion shares.