Investors took advantage of lower prices to buy stocks, lifting the U.S. market on Tuesday in relatively light trading.Stocks are recovering modestly from their biggest losses in more than seven months on Monday, when the Standard & Poor's 500 index fell 2.3 percent.
The Dow Jones industrial average rose
70 points to 15,442 at 2:24 p.m. ET. The S&P 500 index rose 12 points to
1,754. The Nasdaq composite gained 36 points to 4,033.
Markets were coming off a drop of more
than 320 points for the Dow and the blue-chip index's worst January performance
in five years following disappointing news about U.S. manufacturing.
"After this whole year of being
down over 5 percent, I think the markets are trying to rally," said David
Chalupnik, head of equities for Nuveen Asset Management. "I don't know if
it holds through the day."
Financial markets in developing
countries like Turkey and Argentina have been shaken in recent weeks by
concerns that growth will slow and money will flow out of their economies as
the U.S. Federal Reserve tightens its monetary policy. That has knocked down
many stock markets, which were ripe for a pullback after big gains in 2013.
The Nikkei tumbled 4.2 percent to 14,008.47 and is down 14 percent over the past month. Hong Kong's Hang Seng
declined 2.9 percent to 21,397.77 on its first day of trading following a 4-day
weekend for the Lunar New Year. Markets in China and Taiwan remain closed. The
FTSE 100 index of leading British shares eased 0.7 percent at 6,465 while
Germany's DAX fell 0.6 percent to 9,127. The CAC-40 in France rose 0.2 percent
While many investors were buying back
into the market, overall trading was down about 50 percent from the 50-day
moving average benchmark. Even so, most of the active stocks were in the green,
with about three stocks rising for every one declining.
Michael Kors surged $13.98, or 18.1
percent, to $90.55 after the fashion retailer reported third-quarter net income
rose 77 percent. The company topped Wall Street expectations.
Yum! Brands jumped $5.34, or nearly 8
percent, to $71.48. The company, which owns KFC, Pizza Hut and Taco Bell,
reported better-than-expected fourth-quarter earnings late Monday. It also
indicated it remains confident its earnings per share will grow 20 percent this
Xylem was up $2.86, or 8.7 percent, to
$35.66. The water technology provider reported better-than-anticipated
Nine out of the 10 sectors in the
S&P 500 were posting gains. The laggard? Utilities. Dominion Resources led
the sector decline. Shares slid $1.18, or 1.8 percent, to $65.94.
Business information firm The Dun
& Bradstreet fell the most among stocks in the S&P 500 index. It shed
$9.36, or 8.8 percent, to $97.15. Energy equipment company Helmerich &
Payne also dropped, sliding $2.47, or 2.9 percent, to $83.80.
U.S. homebuilders were trading higher
following a report by real estate data firm CoreLogic that showed U.S. home prices climbed 11 percent in December from a year earlier. Home prices slipped
from November to December, the third consecutive monthly decline. Builder NVR
was leading the pack, up $29.97, or 2.6 percent, to $1,166.90.
The yield on the 10-year Treasury note climbed to 2.63 percent from 2.58 percent on Monday as investors sold bonds. For most of the year, investors have bought bonds amid concern that U.S. growth is slowing after a strong fourth quarter, and because the Federal Reserve had reduced its own purchases of bonds.