Stocks Opened Sharply Higher on Alcoa Results

U.S. stocks opened sharply higher on Tuesday, as financial results from Alcoa helped ease some investor jitters regarding the corporate earnings season. The Dow Jones Industrial Average lately jumped 266.46 points, or 1.51%, to 17,907.30. The S&P 500 was up 26.67 points, or 1.31%, to 2,054.93. The Nasdaq Composite gained 71.47 points, or 1.53%, to 4,736.17.

Alcoa Inc reported a higher-than-expected quarterly profit due to a boost from automotive demand, higher aluminum prices and lower energy costs.

Crude oil prices hit their lowest in almost six years on Tuesday in a market readying for further falls, as a big OPEC producer stood by the group’s decision not to cut output to tackle a supply glut. U.S. crude for February CLc1 was down $1.23 at $44.84 a barrel, off an intraday low of $44.20.

General Motors Co. is readying a one-two punch in the electric-car market, hoping to emerge from the shadow of Tesla Motors Inc.Later this year, GM plans to introduce a next-generation Chevrolet Volt that sports a new exterior design and room for five passengers. More important, it promises that the redesigned 2016 Volt will go 50 miles on a full charge, 30% farther than the current model.

KB Home (KBH) said it had net income of $852.8 million, or $8.26 a share, in the fourth quarter, including $825.2 million via a reversal of a deferred tax asset valuation allowance. The company had per-share earnings of 31 cents in the year-earlier period. Revenue came to $796 million, up 29%.

Salus Capital Partners has offered RadioShack Corp. $500 million in bankruptcy financing, according to people familiar with the matter, a move that could increase the lender’s influence if the struggling retailer ends up in Chapter 11.