US stocks end higher
A late-day rebound gave stocks a moderate advance today as sharply lower oil prices and an unexpected jump in consumer confidence settled unease over a batch of mixed earnings.
The market fluctuated through much of the session after disappointing results from UPS and 3M stoked concerns about the health of corporate profits.
McDonald’s and AT&T both had strong earnings, but anxiety over interest rates and geo-political tension kept investors from extending a solid advance in the prior session.
Wall Street maintained some optimism from a rise in consumer confidence for July, while a gentle slowdown in existing home sales last month also brightened hopes of a soft landing for the economy.
Although stocks managed to bounce back in the last hour of trade – the Dow Jones industrials reversed course and added as much as 83 points – analysts say the lack of a significant catalyst meant the move higher was not substantial.
“I think there was some degree of relief when the market was able to hold to the lows and not follow the pattern of the past couple of months: following up days by giving everything back,” said Russ Koesterich, senior portfolio manager at Barclays Global Investments. “The catalysts you would look for were all present in the morning, but the market traded lower.”
The Dow gained 52.66, or 0.48%, to close at 11,103.71. On Monday, a flurry of acquisitions and upbeat earnings boosted the blue-chip index by 182 points.
Broader stock indicators also recovered. The Standard & Poor’s 500 index added 7.97, or 0.63%, to 1,268.88, and the Nasdaq composite index rose 12.06, or 0.58%, to close at 2,073.90.
