Stocks extend rally as U.S. companies report solid profits

Stocks rose on Wall Street, adding to weekly gains for major indexes that have been mired in a broad slump amid inflation and recession concerns. Major indexes also notched significant gains to open the week on the strength of better-than-expected corporate earnings.

The S&P 500 rose 42 points, or 1.1%, to 3,720 on Tuesday, while the Dow Jones Industrial Average added 338 points, or 1.1%, to 30,524. The Nasdaq gained 0.9%. 

Despite fears of recession, investors are taking heart in solid corporate profits as earnings season heats up and companies head into the key holiday shopping season.