Stocks Closed Up as Europe Lifted Optimism

Stocks closed higher on Tuesday for a second day in a row as reports that Silvio Berlusconi would resign as Italy’s prime minister fueled hopes the European nation will be able to better tackle its debt problems. The Dow Jones Industrial Average ended 101.79 points, or 0.84%, up at 12,170.18. The S&P 500 Index advanced 14.80 points, or 1.17%, to 1,275.92, while the Nasdaq Composite gained 32.24 points, or 1.20%, to 2,727.49.

Premier Silvio Berlusconi promised Tuesday to resign after Parliament passes economic reforms demanded by the European Union, capping a two-decade political career that has ended with Italy on the brink of being swept into Europe’s debt crisis.

Japan’s Olympus Corp. said Tuesday that top executives used acquisitions to hide massive losses, reversing denials of any wrongdoing as one of the largest accounting frauds in Japanese history tarnishes the nation’s corporate image.

Dynegy Inc. said Tuesday that one of its subsidiaries is seeking bankruptcy protection as part of a plan that will force bondholders to take heavy losses while shielding major investors including billionaire Carl Icahn.

Activision Blizzard Inc. reported third-quarter results Tuesday afternoon that beat Wall Street’s expectations despite a light release schedule. For the third quarter ended Sept. 30, Activision reported net income of $148 million, or 13 cents a share, compared with net income of $51 million or 4 cents a share for the same period last year.

Crude-oil supplies rose by 148,000 barrels for the week ended Nov. 4, the American Petroleum Institute reported late Tuesday, while gasoline inventories fell by 1.5 million barrels. December crude rose 22 cents in electronic trading after ending at $96.80 a barrel, up 1.3% on the New York Mercantile Exchange.


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