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Surging demand for pickup trucks in the U.S. helped Ford Motor post higher quarterly profits. Sales in China also jumped 47 percent in the first six months of the year. The second-largest car company in the U.S. raised its profit forecast and its stock climbed 43 cents, or 3 percent, to $17.37. AT&T dropped 41 cents, or 1 percent, to $35.40. Higher costs hit AT&T's profits in the latest quarter. The company's coffers were drained by smartphone sales, which it subsidizes in the hope of making money back over the life of two-year contracts. In Europe, a broad gauge of economic activity reached the highest level since January 2012, sending stock markets in Germany and France higher. Financial information company Markit said Wednesday that its monthly purchasing managers' index for the countries that use the euro currency increased for the fourth month running. France's CAC 40 rose 1 percent and Germany's DAX gained 0.8 percent. The report out of Europe pushed prices for U.S. government bonds down and their yields up. The yield on the 10-year Treasury note rose to 2.58 percent from 2.51 percent late Tuesday. Signs of economic strength usually lead traders to sell Treasurys, considered one of the safest places in the world to park cash. The S&P 500 has gained 4.9 percent in July following a rough June. Speculation over when the Federal Reserve will begin pulling back on its bond-buying program rattled financial markets last month.
[Associated
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