U.S. stocks get a lift from earnings data
U.S. stocks rebounded yesterday, buoyed by encouraging earnings, as the market attempted to stabilize in the wake of its largest sell-off in months a day earlier.
The Standard & Poor's 500 index fell nearly 3 percent over the previous two sessions, including Monday's slide, which was the worst drop for the benchmark index since June. The sell-offs were triggered by weaker-than-expected U.S. data, as well as concerns over growth in China and the outlook for some emerging economies.
The drop proved enticing for investors looking for bargains as emerging market concerns retreated and their currencies moved off recent lows.
"Everything that was sort of getting beaten up is bouncing," said Stephen Massocca, managing director at Wedbush Equity Management LLC in San Francisco.
Data Tuesday showed new orders for U.S. factory goods fell in December, but rose for a third straight month when the volatile transportation sector was excluded.
The Dow Jones industrial average rose 72.44 points to end at 15,445.24. The S&P 500 gained 0.76 percent, to finish at 1,755.20. The Nasdaq composite added 0.86 percent to close at 4,031.52. -- Reuters