Wall Street advances on Dubai debt relief, better-than-expected housing and construction readings and construction spending and talk of a GE-Comcast deal.
NEW YORK (CNNMoney.com) -- Stocks rallied Tuesday as worries about Dubai's debt problems dissipated, housing and construction spending reports topped forecasts, and GE and Comcast moved closer to a deal on NBC Universal.
Investors also kept an eye on gold, which crossed the $1,200-an-ounce mark for the first time.
The Dow Jones industrial average (INDU) added 120 points, or 1.2%, over two hours into the session, touching a 13-month high. The S&P 500 (SPX) index gained 11 points, or 1%, and reached a new 13-month high. The Nasdaq composite (COMP) rose 25 points, or 1.2% and remained short of a 13-month high hit a week ago.
Bank shares led a late-session advance Monday as investors bet Dubai's debt problems won't have a major impact on U.S. institutions. Such bets continued to support stocks Tuesday.
Dubai and world markets: Dubai World, the city-state's main investment arm, said it is in talks to restructure $26 billion in debt, cooling worries that it might go into default and wipe out the investment of its creditors.
Global markets slumped last week after the Dubai government asked to defer payments for at least six months on $60 billion in debt owed by Dubai World and Nakheel, its real estate arm.
Overseas markets surged, with London's FTSE 100, Germany's DAX and France's CAC 40 all adding at least 1.7%. Asian markets rallied too, with Japan's Nikkei ending 2.4% higher.
Gold touches $1,200: COMEX gold for December delivery was up $18.90 to $1,200 an ounce, after rising as high as $1,202.70. It's the first time the precious metal has ever traded at this level.
Company news: AIG (AIG, Fortune 500) said it is wiping out $25 billion of its government debt by selling stakes in two of its life insurance subsidiaries to the Federal Reserve Bank of New York. Shares gained 7%.
General Electric (GE, Fortune 500) has reportedly reached a deal to buy Vivendi SA's 20% stake in NBC Universal for about $5.8 billion, moving GE closer to its goal of partnering with Comcast (CMCSA, Fortune 500) to create one of the largest U.S. media companies.
GE is looking to sell a 51% stake in NBC Universal to Comcast, while retaining a 49% stake in the company that is valued at around $30 billion.
