August 30 2015
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Tuesday April 16, 2013 5:11 PM
By Caroline Valetkevitchyog-llu
NEW YORK - Stocks jumped more than 1 percent on Tuesday, a day after their worst decline since November, as gold prices rebounded and earnings from Coca-Cola and Johnson & Johnson improved the outlook for first-quarter results.
Inflation data, which reinforced expectations that the Federal Reserve will keep its stimulus plan in place, added to bullish sentiment.
The price of gold jumped 1 percent after its record daily drop in dollar terms on Monday. The SPDR Gold Shares ETF
The market's advance followed the S&P 500's drop of more than 2 percent drop on Monday, giving the index its worst one-day percentage loss since November 7. The S&P 500 is up 10.4 percent since the start of the year after enjoying a strong first-quarter run, partly as a result of the Fed's continued stimulus efforts.
"Yesterday I think was a bit out of line ... But I think the trend is that the market is consolidating, that we're going to see a little bit of a pullback here over the next month and a half or so, and then we'll get on to greener pastures," said Brian Amidei, managing director at HighTower Advisors in Palm Desert, California.
The stock of Johnson & Johnson
S&P 500 earnings are now expected to have risen 1.8 percent in the first quarter, based on actual results from 42 companies and estimates for the rest, up from a recent estimate of 1.1 percent growth.
The Dow Jones industrial average <.dji> jumped 157.58 points, or 1.08 percent, to close at 14,756.78. The Standard & Poor's 500 Index <.spx> gained 22.21 points, or 1.43 percent, to finish at 1,574.57. The Nasdaq Composite Index <.ixic> rose 48.14 points, or 1.50 percent, to end at 3,264.63.
Of the 30 Dow components, only two ended the day lower.
International Business Machines
Shares of the Walt Disney Co
The Dow Jones Transportation Average <.djt>, often an indicator of investors' perception of the economy, gained 2.2 percent. Shares of United Parcel Service
After the bell, shares of Yahoo
On Monday, a drop in the price of gold and other commodities triggered a sharp selloff in stocks. But stocks fell further late in the session after news of two fatal explosions near the finish line of the Boston Marathon.
The S&P 500's slide on Monday took the index back to a range it had held for about a month. Yet the index closed on Tuesday above its 14-day moving average.
In Tuesday's session, U.S.-listed shares of Randgold Resources
Analysts' positive views on basic materials companies also helped the sector.
Further supporting stocks, data showed the U.S. Consumer Price Index fell in March for the first time in four months, giving the Federal Reserve room to maintain its monetary stimulus to speed up economic growth.
A separate report showed U.S. housing starts rose 7.0 percent last month to an annual rate of 1.04 million units, the highest in nearly five years.
An index of housing stocks <.hgx> jumped 2.6 percent.
Among other earnings, Goldman Sachs
In the retail sector, shares of Target
On the flip side, shares of struggling retailer J.C. Penney
Volume was roughly 6.4 billion shares traded on the New York Stock Exchange, the Nasdaq and the NYSE MKT, compared with the average daily closing volume of about 6.36 billion this year.
Advancers outpaced decliners by a ratio of about 4 to 1 on both the NYSE and the Nasdaq.
(Editing by Kenneth Barry, Nick Zieminski and Jan Paschal)