Rally continues as investors keep focus on profits, economy

In Tuesday's trading, Caterpillar rose $2.83 to $39.48, while Texas Instruments fell 54 cents, or 2.2%, to $23.07.

Among financial companies, CIT tumbled 27 cents, or 21%, to 98 cents. Regions Financial fell 62 cents, or 15.4%, to $3.42 after it nearly tripled what it set aside for soured loans.

Comerica reported a loss as it booked a charge to pay preferred dividends to the government under the Treasury Department's financial rescue program. Shares slid $2.31, or 10.1%, to $20.51.

Other companies expected to report Tuesday include tech giants Yahoo and Apple, as well as Starbucks.

Investors still have major concerns about the economy. Unemployment remains at a 26-year high of 9.5% and the Fed predicts it will exceed 10% by year-end.

"We need a little more time and a little bit more clarity," said Frank Ingarra, co-portfolio manager at Hennessy Funds, referring to questions about how the economy will endure strains like unemployment and a weak housing market.

The dollar was mixed against other major currencies, while gold prices fell.

Oil prices rose 74 cents to settle at $64.72 a barrel on the New York Mercantile Exchange.

In other trading, the Russell 2000 index of smaller companies fell 1.74, or 0.3%, to 525.22.

Overseas, Britain's FTSE 100 gained 0.9%, Germany's DAX index rose 1.3%, and France's CAC-40 rose 1%. Japan's Nikkei stock average jumped 2.7%.

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