Opening Bell Report

The markets opened higher following a better than expected Q2 growth report driven by one-time tax rebates to consumers.  The Dow surged nearly 100 points to 11,600 while Nasdaq rose 13 points to 2396.

On the upside

Caterpillar (NYSE: CAT) expected to be sold out of most of its heavy mining and power generation equipment through 2010 due to strong demand from China.

Upscale jeweler Tiffany & Company (NYSE: TIF) surprised investors with profits that doubled versus year-ago levels and an improved forecast for the 4th quarter.

Fannie Mae (NYSE: FNM) announced a shake up of its management team.  Shares of the beleaguered mortgage company opened higher for the 4th consecutive session.

On the downside

Shares of Sears Holdings (Nasdaq: SHLD) dropped as the department store retailer reported sharply lower profits and falling same-store sales due to sluggish consumer spending.

Shares of Gerber Scientific (NYSE: GRB) fell after the maker of specialty signs posted lower earnings on a small increase in revenues.

China Telecom (NYSE: CHL) reported a dip in profits as its fixed line business faced competition from mobile business rivals.   The company is also expanding quickly as a mobile carrier.

In the broad market, advancing issues outpaced decliners by a margin of more than 2 to 1 on the NYSE and by nearly 2 to 1 on Nasdaq.  The Russell 2000 which tracks small cap stocks added a point to 734.