Stocks emerge from deep dive after Treasury auction

Today's trading was like the love interest from school that got away, but at the last minute came back. Things were looking great with a near 200 point rally on the heels of much better than expected new home sales and after durable goods posted a gain rather than another loss.

But the Treasury auction followed the UK's disappointing lead and the markets fell deep into negative territory. A late-afternoon recovery came out of nowhere, probably on funds buying in with end-of-the-day orders. When the closing bell rang, the Dow Jones Industrial Average rose 90 points, or about 1.2 percent, to close at 7,750.