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Dow closes up 390 points

The Wall Street sign outside the New York

The Wall Street sign outside the New York Stock Exchange in Manhattan on Friday, Sept. 4, 2015. Credit: Bloomberg News / Victor J. Blue

The Dow Jones industrial average closed up 390 points Tuesday, buoyed by a late market rebound in China and some strong U.S. corporate news.

At the close on Wall Street, the Dow had gained 390.3 points, about 2.4 percent, to 16,492.7. Standard & Poor's 500 index had risen 48.2 points, about 2.5 percent, to 1,969.4. The The Nasdaq composite gained 128 points, about 2.7 percent, to nearly 4,812.

ENERGY: As the markets closed, the price of benchmark U.S. crude was down 15 cents at $45.90 a barrel on the New York Mercantile Exchange.

CHINA TRADE: China's stock market rebounded despite some disappointing news on its economy. China's exports shrank 5.5 percent last month compared with a year earlier, while imports tumbled 13.8 percent. August's figures were hit by disruption from a massive explosion at the busy Tianjin port and government-enforced factory shutdowns in the run-up to a huge military parade in Beijing last week. China's trade has been weak for months, reflecting muted global demand and a domestic slowdown.

ANALYST'S OPINION:"Now that China showed that it was not going to break down further, our market is taking back what it lost on Friday," said analyst Matt Maley, an equity strategist at Miller Tabak & Co. in Manhattan. "The market got hit hard on Friday because people were worried about China."

POWER DEALS: Florida-based Teco energy surged after Canadian energy and services company Emera said that it would buy the electric and gas utility company for about $6.5 billion. Teco's stock closed up $5.27, about 25 percent, at $26.34. Meredith Corp. of Des Moines, Iowa, jumped $4.53, about 9.9 percent, to close at $50.47 after agreeing to be acquired by Virginia-based media company Media General. Media General shares were down 67 cents, about 6 percent, at $10.48.

Reports from The Associated Press and Bloomberg News were used in this story.

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