Stocks up as investors eye world markets
NEW YORK (AP) — Wall Street rebounded moderately Tuesday as investors were encouraged by a recovery on world markets and moved to recoup some of the massive losses suffered in last week’s sharp pullback.Investors came off the sidelines to buy stocks that have languished in five turbulent sessions. Dow Jones industrials were briefly up more than 100 points before giving back some of their games.However, it was unclear if the correction that has swept around the global had run its course. U.S. investors were still contending with fundamental economic issues, including a weaker than expected reading on fourth-quarter productivity and the dollar’s continuing weakness against the yen.Moreover, trading has been volatile over the past week, with stocks tending to give back any slim gains they made during the course of a session. The potential for a change of direction might also come from a speech by Federal Reserve Chairman Ben Bernanke during the afternoon session.The gains on Tuesday treated Wall Street traders to a rare sight – the color green splashed across their computer screens that show stock prices. But, after being knocked about by erratic market shifts in recent sessions, there was still a sense this might not be the recovery everyone is waiting for.”I don’t think we should get too used to seeing all this green,” said Jay Suskind, head trader at Ryan Beck & Co. “This market feels to me like it doesn’t have legs, there just doesn’t seem to be that euphoria out there. There is still trepidation.”The Dow rose 47.66, or 0.40 percent, to 12,098.07.Broader stock indicators also rose. The Standard & Poor’s 500 index was up 8.02, or 0.58 percent, at 1,382.14, and the Nasdaq composite index, especially hard hit over the past week, rose 21.24, or 0.91 percent, to 2,361.92. The Russell 2000 index of smaller companies was up 7.87, or 1.04 percent, at 767.93.Overseas, stock indexes were posting healthy gains after plunging for the past week. According to the Dow Jones Wilshire Global Total Market Index, the world’s markets lost $3.1 trillion since Feb. 26 – with $1 trillion coming from the U.S. alone.Japan’s Nikkei stock average closed up 1.22 percent. In afternoon trading, Britain’s FTSE 100 regained 0.99 percent, Germany’s DAX index rose 0.82 percent, and France’s CAC-40 was up 0.86 percent.The gain in equities, and lingering inflation worries, sent prices falling in the bond market. The yield on the benchmark 10-year Treasury note rose to 4.52 percent from 4.51 percent on Monday.Oil prices rose as strategists pointed to robust demand for gasoline and falling petroleum inventories. The price of a barrel of light sweet crude rose 20 cents to $60.27.The recovery on Tuesday was led by financial stocks that have been especially battered because of the market plunge. Treasury Secretary Henry Paulson said commented that credit issues linked to the U.S. housing slump will be limited, easing concern about the potential of rising defaults in subprime loans.Mortgage lender New Century Financial Corp., which shed almost 70 percent of its market value on Monday, rose 1.12 cents, or 25 percent, to $5.68. Fremont General Corp. added 69 cents, or 11.7 percent, to $6.58 after it dropped more than 40 percent in the previous session.Citigroup Inc. rose 58 cents to $49.83 after the biggest U.S. bank offered $10.8 billion to buy Japan’s Nikko Cordial Corp. The deal would rank as the largest acquisition of a Japanese brokerage by a foreign company.Google Inc. shares rose $9.65, or 2.2 percent, to $450.56 after Chief Executive Eric Schmidt said at a technology conference that the Web search leader is working with Apple Inc. on new projects. Apple rose $1.31, or 1.5 percent, to $87.65.Acquisition activity also continued. Topps Co., known for sports cards and Bazooka bubble gum, spiked after it agreed to be acquired by a private equity firm in a $385 million deal. Shares rose 97 cents, or 11 percent, to $9.88.Advancing issues outnumbered decliners by about 3 to 2 on the New York Stock Exchange, where volume came to 561.1 million shares.
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