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U.S. markets post strong gains Tuesday

NEW YORK, July 22 (UPI) -- U.S. stock markets advanced Tuesday as oil prices fell and DuPont and Caterpillar both announced positive second quarters.

DuPont's second quarter earnings were up 11 percent, while Caterpillar reported a 34 percent net increase on strong demand overseas, The Wall Street Journal reported.

Oil prices fell sharply to $127.25 per barrel on the New York Mercantile Exchange.

By close Tuesday, the Dow Jones industrial average was up 135.16 points to 11,602.50, up 1.18 percent. The Standard and Poor's 500 index rose 1.35 percent to 1,277.00, up 17 points. The Nasdaq composite index rose 1.07 percent to 2,303.96, up 24.43 points.

On the New York Stock Exchange, 2,227 stocks advanced and 926 declined on a volume of 1.565 billion shares traded.

The 10-year U.S. Treasury note fell 19/32 to yield 4.115 percent.

The euro traded at $1.5779 from Monday's $1.5899, while the dollar traded at 107.26 yen from Monday's 106.70 yen.

In Tokyo, the Nikkei index gained 381.26 points to 13,184.96, up 2.98 percent.

In London, the FTSE 100 index fell 40.20 to 5,364.10, down 0.74 percent.

White House to review CBO rescue estimate

WASHINGTON, July 22 (UPI) -- White House spokeswoman Dana Perino said the Bush administration would review a $25 billion estimate for a U.S. mortgage company rescue plan.

"Just give us a little bit of time to take a look at it because they crunched a lot of numbers," Perino said, reflecting on the Congressional Budget Office's estimate on how much taxpayer money might be used to support the Federal Home Loan Mortgage Corp. and the Federal National Mortgage Association.

Perino also said the intention of the plan "is not to need any sort of federal taxpayer monies."

"Having the authorities in place that we've asked for, that we've asked Congress to pass, are important for market stability," she said.

U.S. Treasury Secretary Henry Paulson Jr. has asserted that there is no current plan in place for the federal government to purchase equity in either Freddie Mac or Fannie Mae, although the plan calls for authorizing that.

The White House wants the authority to use the funds, but "we don't intend to use them," Perino said.

Global investor confidence aligned in July

BOSTON, July 22 (UPI) -- Asian investors helped push the Global Confidence Index up 3.6 points in July, researchers at State Street Global Markets reported Tuesday.

In Asia, investors' "risk appetite" grew 8.5 points to 82.9, helping push the Global Index up to 82.6, State Street reported.

The North American Index declined 6.9 percent to 84.7, and the European measure of investor confidence fell slightly, down 0.9 points to 80.5.

"Despite the market turmoil of the recent weeks, particularly in the financial sector, institutional investors perceive some value at current price levels," said Harvard University professor Ken Froot, who helped develop the index.

Globally, investor confidence are evenly matched, State Street Associate Director Paul O'Connell said.

"With this month's slight decline in North America coupled with a rebound in confidence in both Europe and Asia, investors are more in alignment globally than they have been for some time," O'Connell said.

In the past 10 years, the monthly index has range from a low of 65.9 in December 2007 to a high of 111.2 in February 2001.

Nissan move shows Southern hospitality

FRANKLIN, Tenn., July 22 (UPI) -- Nissan North America opened its new U.S. headquarters in Franklin, Tenn., Tuesday as local leaders gauged the impact of the area's new employer.

Tennessee Gov. Phil Bredesen was among the leaders on hand for the opening of the $100 million, 10-story headquarters called the Nissan Americas building, the Nashville Tennessean reported.

The company's most immediate impact could quickly be measured by the addition of 1,500 jobs.

"We have yet to see what the impact is, not only from a commercial tax base but the involvement of the employees from a community standpoint, from a philanthropic standpoint," Franklin Mayor John Schroer said.

Nissan North America already had plans to disclose its first three donations to the community, starting with a donation to the Harpeth River Watershed Association and to two anonymous causes, the newspaper reported.

The company has also donated to two Habitat for Humanity homes in Williamson County, the newspaper reported.