* S&P 500 hits record intraday high of 2,155.32
* Dow industrials hit record intraday high of 18,363.72
* FTSEurofirst 300 up for fourth straight session
* Treasury yields rise on anticipation of new Japan stimulus
* Dollar hits more than two-week high vs. yen
(Updates to close of European markets)
By Sam Forgione
NEW YORK, July 12 (Reuters) - Major U.S. stock indexes set
record intraday highs on Tuesday as optimism about the world
economy and upbeat corporate results from Alcoa (NYSE:AA) boosted risk
appetite, while European shares rose for the fourth straight
day.
The benchmark S&P 500 hit 2,155.32, topping Monday's
intraday record high by more than 12 points, while the Dow Jones
industrial average rose to 18,363.72 to top its previous record
intraday high touched in May 2015. The tech-heavy Nasdaq
Composite also gained, wiping out its losses for the year.
Increasing prospects of global economic health boosted
shares, while Alcoa AA.N reported a smaller-than-expected drop
in quarterly profit, sending the aluminum producer's shares up
more than 5 percent and helping boost optimism about the
earnings season.
Investors' appetite for equities has increased after robust
economic data, including a stronger-than-expected U.S. jobs
report for June last Friday, and low yields on government bonds.
Easing political uncertainty in Britain and Japan have reduced
some global uncertainties.
The FTSEurofirst 300 and STOXX Europe 600 .STOXX indexes
ended higher for a fourth straight session and notched their
highest closes since Britain voted to leave the European Union
on June 23. Gains in shares of Italian banks helped fuel the
rise, with UniCredit CRDI.MI ending up more than 13 percent.
"There are no good alternatives, from an income standpoint,
to the U.S. equity markets at this point, and that's driving the
momentum today," said Bill Northey, chief investment officer at
Private Client Group of U.S. Bank. "But we need to see some
supporting earnings growth to accompany this move."
MSCI's all-country world equity index .MIWD00000PUS was
last up 3.98 points, or 0.98 percent, at 408.86.
The Dow Jones industrial average .DJI was last up 120.64
points, or 0.66 percent, at 18,347.57. The S&P 500 .SPX was up
16.46 points, or 0.77 percent, at 2,153.62. The Nasdaq Composite
.IXIC was up 36.98 points, or 0.74 percent, at 5,025.62.
Europe's broad FTSEurofirst 300 index .FTEU3 closed up
1.14 percent, at 1,330.46.
Oil prices surged more than 4 percent in a technical rebound
and on short covering after hitting two-month lows in the
previous session.
Brent crude LCOc1 was last up $1.98 at $48.23 a barrel.
U.S. crude CLc1 was last up $1.84 at $46.6 per barrel.
Safe-haven assets such as U.S. Treasuries, the Japanese yen
and gold fell in price. Benchmark 10-year Treasury yields, which
move inversely to prices, hit a 1-1/2-week high of 1.508
percent.
Yields rose as expectations of new stimulus in Japan boosted
stocks and reduced demand for safe-haven bonds, and ahead of
this week's new supply.
"Some of the uncertainty, 'flight-to-quality' type of
unknown bid is leaving the markets," said Tom Tucci, head of
Treasuries trading at CIBC in New York.
The U.S. dollar hit its highest level in more than two weeks
against the yen JPY= of 104.92 yen on the global risk appetite
and anticipation of more Japanese stimulus. The euro was last
0.2 percent higher against the dollar, however, at $1.1082. Gold
fell for a second straight day.