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Stocks rise on strong auto sales, factory orders
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The Dow Jones industrial average touched another record high Tuesday following strong reports on auto sales and factory orders, the latest evidence that the U.S. economy is strengthening.

Chrysler said it sold more cars and trucks in March than in any month since the Great Recession began, an increase of 5 percent. U.S. sales for General Motors and Ford rose 6 percent.

Orders to U.S. factories rose 3 percent in February, the best gain in five months, the government announced after trading began. The report also said January's decline in orders was smaller than previously reported.

The Dow Jones industrial average was up 87 points, or 0.6 percent, at 14,659 as of 10:25 a.m. Eastern time. It rose as high as 14,665 shortly after the factory data were released.

The Standard & Poor's 500 index rose nine points, or 0.6 percent, to 1,571. The Nasdaq composite rose 25, or 0.8 percent, to 3,264.

Health insurance companies rose the most of the 10 sectors in the S&P 500 index, more than 1 percent. The boost came a day after the government released revised Medicare Advantage rates that suggest funding cuts will be less severe than analysts and companies had feared. The sector is up more than 16 percent this year.

After preliminary data were released in February, health insurers and industry analysts had warned that companies offering Medicare Advantage plans would be forced to cut benefits, increase customers' premiums or abandon some markets. This week's data suggest that may not be necessary.

UnitedHealth was the biggest gainer in the Dow. Humana Inc. led the S&P 500 higher. Also among the S&P 500's top 10 gainers were DaVita HealthCare Partners Inc., Cigna Corp., WellPoint Inc. and Aetna Inc.

Among health insurance companies, UnitedHealth rose $4.70, or 8 percent, to $63.67. Humana gained $6.99, or 9 percent, to $81.99. DaVita HealthCare Partners rose $8.03, or 7 percent, to $127.69. Cigna added $3.05, or 5 percent, to $65.96. WellPoint increased $2.91, or 4 percent, to $70.35. Aetna rose $2.05, or 4 percent, to $54.43.

Among the other companies making big moves:

— Hewlett-Packard plunged after a Goldman Sachs analyst downgraded the stock, predicting the company's earnings will be weak. Shares fell $1.35, or 6 percent, to $21.96.

— Urban Outfitters climbed a day after the clothing and accessories company said sales at stores open at least a year have grown in the high single digits in the first two months of the fiscal quarter started Feb. 1. Sales at stores open at least a year is a key gauge of a retailer's health because it excludes results from stores recently opened or closed. The stock rose $1.91, or 5 percent, to $40.32.

— Actavis Inc. rose after a U.S. court cleared the way for it to sell a generic asthma inhaler by declaring a rival's patent invalid. The stock added $4.07, or 4 percent, to $96.53.

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Raging wildfires in South force evacuations in Tennessee
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Fires blaze on the hills above Dollywood’s DreamMore Resort in Pigeon Forge, Tenn. Tuesday morning. Bruce McCamish Photography | The Covington News

ATLANTA (AP) — Raging wildfires fueled by high winds forced the evacuation of thousands of people and damaged hundreds of buildings in a popular resort town on the border of the Smoky Mountains National Park as National Guard troops arrived early Tuesday to help overwhelmed firefighters.

Rain had begun to fall in some areas, but experts predicted it would not be enough to end the relentless drought that has spread across several Southern states and provided fuel for fires now burning for weeks in states including Tennessee, Georgia and North Carolina.

The storms appeared to be taking aim at the nearly 28,000-acre Rough Ridge Fire in north Georgia and the nearly 25,000-acre Rock Mountain Fire that began in Georgia and then spread deep into North Carolina.

In Gatlinburg, Tennessee, officials said hundreds of homes and other buildings, including a 16-story hotel, were damaged or destroyed by flames. And preliminary surveys indicated that Westgate Resorts, with more than 100 buildings, and Ober Gatlinburg were both likely destroyed, according to a news release Tuesday morning.

Emergency officials ordered evacuations in downtown Gatlinburg and Pigeon Forge and in other areas of Sevier County near the Smoky Mountains while crews continue to battle the blaze, which also had crept to the edge of the Dollywood theme park. About 14,000 residents and visitors were evacuated from Gatlinburg alone, officials said.

No deaths have been reported, though several people were hospitalized with burns, emergency officials said in the news release.

Officials say there are about 1,200 people sheltering at the Gatlinburg Community Center and the Rocky Top Sports Park. Several other shelters have opened to house those forced from their homes. TV broadcasts showed residents streaming out of town just as rain started to wet roads.

Workers at an aquarium evacuated because of the wildfires were concerned about the thousands of animals housed there. Ryan DeSears, general manager of Ripley's Aquarium of the Smokies, told WBIR-TV the building was still standing and all workers had been evacuated late Monday. However, he said workers were anxious to return to check on the well-being of the 10,518 animals.

The rain forecast "puts the bull's-eye of the greatest amounts right at the bull's-eye of where we've been having our greatest activity," said Dave Martin, deputy director of operations for fire and aviation management with the southern region of the U.S. Forest Service.

The projected rainfall amounts "really lines up with where we need it," Martin said Monday. "We're all knocking on wood."

After weeks of punishing drought, any rain that falls should be soaked up quickly, forecasters said. It will provide some relief but won't end the drought — or the fire threat, they said.

Drought conditions will likely persist, authorities said. The problem is that rainfall amounts have been 10 to 15 inches below normal during the past three months in many parts of the South, authorities said.

"I think we racked up deficits that are going to be too much to overcome with just one storm system," said Mark Svoboda, director of the National Drought Mitigation Center in Lincoln, Nebraska.

"I would say it's way too early to say 'Yes, this drought is over,'" Svoboda said. "Does it put a dent in it? Yes, but we have a long ways to go."

The rain also brings danger because strong winds at the leading edge of the storms can topple trees and limbs that can kill and injure firefighters, he said.

In Mississippi, trees were reported downed Monday in nearly 20 counties across the state. Sustained winds of 30 to 40 mph with gusts of more than 50 mph were reported and more than 2 inches of rain fell in some areas.

Power outages peaked at more than 23,000 statewide in Mississippi. Powerlines downed by winds sparked grass fires in four counties, said Greg Flynn, a spokesman for the Mississippi Emergency Management Agency.

The storms moved across Alabama on Monday night and fell on Georgia during the overnight hours. High wind warnings were issued for mountainous areas in northern parts of Georgia.

In South Carolina, the stormy forecast was giving hope to firefighters battling a blaze in the northwest corner of the state. The South Carolina Forestry Commission hopes to contain the Pinnacle Mountain fire by the middle of next week.
More rain was expected Tuesday night and Wednesday morning in parts of Louisiana, Mississippi and Alabama.
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Fuller reported from New Orleans. Associated Press writers Rebecca Yonker in Louisville, Kentucky; Jeff Amy in Jackson, Mississippi; Beth Campbell in Louisville, Kentucky; and Jack Jones in Columbia, South Carolina, contributed to this report.