By Angela Moon
NEW YORK (Reuters) - Stocks hit a five-month high on Tuesday after strong import data from major metals consumer China and a bullish forecast by ALCOA (AA.NY)boosted the outlook for commodities companies and pointed to a stronger global economy.
Although Wall Street was concerned about sovereign debt auctions later in the week from Italy and Spain, the two countries at the center of the euro zone crisis, the focus remained on recent solid economic reports and optimism about the coming earnings season.
"The general economy, outside of the financial market, seems to be doing well, and there is a broader consensus from retailers that they have nothing to fear," said Sean Darby, global head of equity strategy at Jefferies Group.
The Dow Jones industrial average <.DJI> was up 97.07 points, or 0.78 percent, at 12,489.76. The Standard & Poor's 500 Index <.SPX> rose 12.63 points, or 0.99 percent, at 1,293.33. The Nasdaq Composite Index <.IXIC> put on 30.69 points, or 1.15 percent, at 2,707.25.
Aluminum maker Alcoa Inc
A gauge of materials companies' shares <.GSPM> led S&P 500 sectors with a gain of 2.2 percent.
"Materials have been one of the weaker areas, so values are quite extraordinary if you believe the recovery is going to drive prices higher," said Robert Lutts, president of Cabot Money Management in Salem, Massachusetts.
The Dow and S&P 500 hit their highest intraday levels in five months on Tuesday. A close above 1,285.09 would be the highest for the S&P since at least August 1 and would pierce technical resistance, which could augur further gains.
Mining stocks led European markets higher. The STOXX Europe 600 Basic Resources index <.SXPP> rose 3.9 percent and the broad FTSEurofirst 300 <.FTEU3> closed up nearly 2 percent.
Copper prices rose 3.1 percent, the best performance since late November, after China reported copper imports rose 12.6 percent last month.
Easing some concerns about Europe, Fitch said it does not expect to cut France's AAA credit rating this year, while countries under review such as Italy or Spain could be downgraded by one or two notches.
U.S. bank stocks continued a rebound that has lifted the KBW banks index <.BKX> more than 8 percent so far this year. The KBW rose 1.7 percent, while the S&P financial sector <.GSPF> rose 1.9 percent.
(Reporting By Angela Moon; editing by Jeffrey Benkoe)
