Oct 14, 2014 11:56 AM
US stocks rise, breaking a three-day slump
The Associated Press
Major stock indexes moved higher in midday trading Tuesday, regaining some of the ground they lost the day before. Investors sifted through a batch of corporate earnings for clues on the prospects for economic growth, a concern that contributed to three-day slump in stocks.
KEEPING SCORE: The Dow Jones industrial average rose 118 points, or 0.7 percent, to 16,440 as of 12:03 p.m. Eastern time. The Standard & Poor's 500 index added 20 points, or 1.1 percent, to 1,895. The Nasdaq gained 57 points, or 1.4 percent, to 4,271.
THE QUOTE: "We'll see how much stability comes back to the market as a result of this," said Matt Whitbread, investment manager at Baring Asset Management. "We've seen some active afternoon sessions of late where we've seen some quick give-ups of some of the morning gains."
LONG WAY BACK: Stocks are coming off their worst week in more than two years. The Dow went negative for the year on Friday. A late-afternoon slide on Monday extended the market slump, sending the Dow 222 points lower. The Dow is now down 0.9 percent for 2014, while the S&P 500 index is up 2.4 percent.
BANK REPORT CARDS: Several major banks kicked off the third-quarter corporate earnings season. JPMorgan Chase returned to a profit, but missed Wall Street's expectations. The stock shed 43 cents, or 0.7 percent, to $57.72. Wells Fargo's earnings matched analysts' expectations, while Citigroup's results came in better than expected. Wells Fargo slipped 51 cents, or 1.1 percent, to $49.67. Citigroup rose $1.11, or 2.2 percent, to $51.01.
TASTY SLICE: Domino's Pizza jumped 8.9 percent on better-than-expected earnings. The stock rose $6.74 to $82.46.
REGAINING ALTITUDE: Delta Air Lines and Southwest Airlines surged in early trading Tuesday, a day after the sector got pummeled amid mounting worries that the Ebola virus outbreak could curb travel spending. Delta jumped $2.16, or 7 percent, to $33.06, while Southwest climbed $2.04, or 7.1 percent, to $30.93.
SECTOR MONITOR: The 10 sectors in the S&P 500 rose, with industrial stocks posting the biggest gain.
SHAKY OUTLOOK: Resistance from Germany to increasing government spending to stimulate economic growth in Europe dampened hopes for additional steps to counter what some economists believe may be a lapse back into recession for the region. On Tuesday, Germany got another dose of bad economic news. The ZEW index of investor sentiment fell for a tenth consecutive month in October.
OVERSEAS MARKETS: European markets rose. France's CAC 40 added 0.2 percent, and Germany's DAX gained 0.2 percent. Britain's FTSE 100 added 0.4 percent. In Asia, Japan's Nikkei 225 fell 2.4 percent, while Hong Kong's Hang Seng shed 0.4 percent. South Korea's Kospi gained 0.1 percent. Markets in Southeast Asia were mixed, while China's Shanghai Composite Index lost 0.3 percent.
BONDS & COMMODITIES: The yield on the 10-year Treasury note slipped to 2.23 percent from 2.29 percent late Friday. U.S. crude declined $1.62 to $84.10 a barrel.
AP Business Writer Elaine Kurtenbach in Tokyo contributed to this report.