Stocks Rally as Fed Holds Steady

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August gold futures were lower at $882.50 per ounce. The U.S. dollar strengthened against the euro, which fell 0.79% to $1.5454.

Among Tuesday's stocks in the news, Procter & Gamble (PG) reported fourth quarter earnings per share of 92 cents, vs. 67 cents one year earlier, on a 10% revenue rise. The company sees fiscal 2009 EPS of $4.18-$4.25 (GAAP basis), which includes an estimated 50-cent gain from the sale of its Folgers coffee business and a 12-cent investment in incremental restructuring.

Bankrate (RATE) posted second quarter adjusted operating EPS of 39 cents, vs. 35 cents one year earlier, on a 73% revenue rise. As previously announced on July 7, the company lowered its 2008 annual guidance as a result of softness in display advertising. The company expects annual revenue to be between $164-$169 million and adjusted EBITDA of $54-$58 million. Jefferies cut its price target on the shares to $35 from $54. The firm also cut its estimates on Bankrate and reiterated its hold recommendation.

Molson Coors Brewing (TAP) reported second-quarter non-GAAP EPS (underlying after-tax income) of 93 cents, vs. 97 cents one year earlier, as higher special charges, increased energy and commodity inflation in all markets, and a higher effective tax rate for the second quarter offset a 4.8% sales rise.

Marvel Entertainment (MVL) posted second-quarter EPS of 59 cents, vs. 34 cents one year earlier, on a 55% sales rise. The company sees $1.55-$1.75 2008 EPS on revenue of $450-$480 million. Marvel’s guidance now includes results from its Film Production unit.

Archer-Daniels-Midland (ADM) posted lower-than-expected fourth-quarter EPS of 58 cents, vs. $1.47 one year earlier, on a 78% revenue rise. Wall Street was looking for a profit of 67 cents. The company notes results in the prior-year period include after-tax gains on asset sales of 95 cents per share.

Tenet Healthcare (THC) posted a second-quarter loss of 3 cents per share vs. a loss of6 cents one year earlier on a 6.3% revenue rise.

Allied Capital (ALD) posted a second-quarter loss of 59 cents per share vs. 57 cents EPS one year earlier as a net change in unrealized appreciation or depreciation offset a 14% rise in total interest and related portfolio income.

CNBC reports Lehman Brothers Holdings (LEH) is considering selling its entire investment management business, including private equity and hedge fund stakes, rather than just its Neuberger Berman business, as the bank looks to raise capital.

UBS reportedly initiates coverage on Apple Inc. (AAPL) with a buy rating.

UBS also reportedly upgraded American International Group (AIG) to buy from neutral.

Major European indexes were trading higher Tuesday. In London, the FTSE 100 index climbed 2.52% to 5,454.50. In Paris, the CAC 40 index rose 2.47% to 4,386.35. Germany’s DAX index gained 2.66% to 6,518.70.

Major Asian equity indexes lost ground Tuesday. Japan’s Nikkei 225 index fell 0.14% to 12,914.66. In Hong Kong, the Hang Seng index tumbled 2.51% to 21,949.75.

Treasury market

Treasuries fell Tuesday. The 10-year note lost 15/32 to 98-26/32 for a yield of 4.02%, while the 30-year bond dropped 28/32 to 95-22/32 for a yield of 4.64%. The U.S. government will sell $17 billion of 10-year notes on Wednesday and $10 billion of 30-year bonds on Thursday.