The blue-chip index rose roughly 180 points, or 1.5%, to finish at 12,397. At its peak for the session, the Dow ran as high as 12,479, a gain of more than 280 points.
Twenty-six of the Dow's 30 components rose on Tuesday with aluminum producer Alcoa(AA) posting the largest percentage increase, advancing 6.7% to $9.23. The Dow's big banks were also strong with Bank of America(BAC), adding 4.3% to $5.80; and JPMorgan Chase(JPM), rising 5.2% to $34.98.
Traditionally the first Dow component to report its quarterly results, Alcoa is scheduled to deliver its fiscal fourth-quarter numbers on Jan. 9. The average estimate of analysts polled by Thomson Reuters is for a profit of 2 cents a share for the December-ended period on revenue of $5.79 billion.
Bank of America shares were able to rally despite a research report from Keefe, Bruyette & Woods that said the bank could have a "material miss" in its fourth-quarter results because of its mortgage-related legal exposure.
The bank is scheduled to report its fourth-quarter results on Jan. 19 and KBW expects Bank of America to post a loss of 3 cents a share for the three-month period. The average estimate of analysts polled by Thomson Reuters is for earnings of 18 cents a share in the December quarter on revenue of $23.67 billion.
Caterpillar was another strong performer within the Dow, gaining 3.7% to $93.98.
The heavy machinery manufacturer expects 10% growth in China's construction market, according to Reuters.
Shares of Cisco rose 3.4% to close at $18.63 after JPMorgan upgraded the stock to overweight from neutral. The firm has a 12-month price target of $21 on the stock.
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