Wall Street barreled out of its slump Tuesday, soaring in response to a solid consumer confidence reading and a strong earnings outlook from Verizon Communications. The Dow Jones industrial average gained more than 120 points, springing back above 10,000.

Verizon's bullish second-quarter earnings and positive outlook were a much-needed boost to a market that has sagged for four weeks on concerns over stalled economic growth and a series of second-half profit warnings.

Investors were also cheered by a surge in consumer confidence. The Conference Board's consumer confidence index rose to 106.1 in July, the highest level since June 2002 and up from last month's revised reading of 102.8.

The Dow rose 123.22, or 1.2 percent, to 10,085.14, closing above the 10,000 mark for the first time since Thursday. The Standard & Poor's 500-stock index climbed 10.76, or 1 percent, to 1094.83, and the Nasdaq composite index gained 30.08, or 1.6 percent, to 1869.10.

Despite the upbeat news, Tuesday's advance could evaporate if earnings reports due on Wednesday and Thursday disappoint the market. Among the companies reporting Wednesday are Boeing, Sony and Time Warner; on Thursday, Exxon Mobil, Bristol-Myers Squibb and Gillette are scheduled to release their results.

Companies' second-quarter results have been good, but their tepid outlooks for the rest of the year have shaken the market recently. That's why Verizon's earnings outlook Tuesday -- the telecom company said it was on target for the next quarter -- gave Wall Street such a big lift. Verizon surged $1.36, to $37.86.

U.S. Steel also gave a bullish outlook for the rest of the year, and exceeded analyst estimates on its second-quarter earnings by 9 cents per share. U.S. Steel rose 15 cents, to $34.07.

Other Indicators

* The New York Stock Exchange composite index rose 49.96, to 6347.60; the American Stock Exchange index rose 3.61, to 1221.51; and the Russell 2000 index of smaller-company stocks rose 11.12, to 544.61.

* Advancing issues outnumbered declining ones by 5 to 3 on the NYSE, where trading volume rose to 1.6 billion shares, from 1.41 billion on Monday. On the Nasdaq Stock Market, advancers outnumbered decliners by 9 to 4 and volume totaled 1.74 billion, up from 1.64 billion.

* The price of the Treasury's 10-year note fell $9.69 per $1,000 invested, and its yield rose to 4.61 percent, from 4.49 percent on Monday.

* The dollar rose against the Japanese yen and the euro. In late New York trading, a dollar bought 110.99 yen, up from 109.85 late Monday, and a euro bought $1.2045, down from $1.2146.

* Light, sweet crude oil for September delivery settled at $41.84, up 40 cents, on the New York Mercantile Exchange.

* Gold for current delivery fell to $387.00 a troy ounce, from $390.30 on Monday, on the New York Mercantile Exchange's Commodity Exchange.