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U.S. stocks rise for 2nd day; European markets rally, French stocks up 2%

U.S. stocks shot higher in late morning trading as Wall Street looks beyond the deadly terror attacks in Paris and got some good news on the profit front from home improvement retailer Home Depot and retail giant Walmart Stores.2013-11-04T131020Z_8_CBRE99U0VX000_RTROPTP_3_MARKETS-STOCKS_original

For the second straight day, stock markets around the globe are in rally mode, as investors continue to bet that the latest terrorist strike won’t have a major negative economic impact. In a sign of market resilience, shares in Europe were up sharply Tuesday, with the broad Stoxx Europe 600 up 2.1%. The biggest gains were in France, where the CAC 40 jumped 2.1%. Elsewhere in Europe, Germany’s DAX index gained 1.8%. London’s FTSE 100 was up 1.6%.

U.S. stocks rose after a slow start to the trading day as the Dow Jones industrial average gained about 80 points, or 0.4%, after Monday’s 238-point rally. The Standard &Poor’s 500 rose 0.4% and the Nasdaq composite index gained 0.4%. Wall Street refocused its attention on corporate earnings and economic data. Investors got a lift from earnings beats from Dow components Home Depot (HD) and Walmart (WMT), which gave the blue-chip gauge a boost and reduced some of the fears of a retail slowdown sparked last week by a big earnings miss from department store Macy’s. Shares of Walmart jumped 4.4% and Home Depot were up 4.2%.

Investors were also digesting the October reading of inflation at the consumer level, which came in solid and showed stability, reducing fears of deflation. In Asia, Japan’s Nikkei 225 index rose 1.2% on expectations for further stimulus measures by the central bank after the economy slipped into a recession. Hong Kong’s Hang Seng index gained 1.2% and the Shanghai composite index lost 0.1%. Global stocks had a muted reaction Monday to Friday’s terror attacks in Paris, as investors sought solace in history that shows acts of terrorism do not have a large or lasting impact on the economy. U.S. stocks rallied as the Dow jumped 238 points to 17,483.