TribLIVE

| Business


 
Larger text Larger text Smaller text Smaller text | Order Photo Reprints

Stocks rebound on home prices, earnings; Dow up 99

On the Grid

From the shale fields to the cooling towers, Trib Total Media covers the energy industry in Western Pennsylvania and beyond. For the latest news and views on gas, coal, electricity and more, check out On the Grid today.

Daily Photo Galleries

By The Associated Press
Tuesday, Feb. 5, 2013, 5:02 p.m.
 

NEW YORK — The stock market bounced back on Tuesday as home prices surged and Europe's economy showed signs of recovery. Strong earnings reports also helped power the gains.

The Dow Jones industrial average ended the day 99.22 points higher at 13,979.30, erasing a large part of its loss from Monday. The index traded above 14,000 during the day before falling back in the last hour.

The Standard & Poor's 500 gained 15.59 points to 1,511.29. The Nasdaq composite was up 40.41 points to 3,171.58.

The rise follows two days of whiplash. On Monday, the Dow dropped 129 points, its worst sell-off of the year so far, as fears about Europe's finances resurfaced. The index gained 149 points Friday, closing above 14,000 for the first time since 2007.

With strong gains for stocks this year, investors are wondering whether they should sell now, or wait and see if the rally still has legs, said Brad Reynolds, chief investment officer at LJPR Inc.

Tuesday's advance was driven by data showing U.S. home prices rose in December at the fastest pace in more than six years. CoreLogic, a real estate data provider, reported that home prices rose 8.3 percent. In Europe, a measure of manufacturing and service businesses rose to a 10-month high January.

Stocks have gotten off to a strong start this year. The Dow advanced 5.8 percent in January, its best start to the year since 1994, according to data compiled to S&P Dow Jones indices. The S&P 500 rose 5 percent last month.

Lance Roberts, chief economist at Streettalk Advisors in Houston, Texas, said that's related more to the Federal Reserve's commitment to keep money cheap than to companies' performance. If earnings are beating estimates, he said, it's largely because expectations were so low.

The fact that individual investors are starting to return to stocks, as they have in recent weeks, is the latest sign that the market is due for a correction, Roberts and other analysts have said.

 

 
 


Show commenting policy

Most-Read Business Headlines

  1. How to avoid Amazon and still get deals
  2. Strengthening U.S. growth reflects help from Federal Reserve
  3. Sweet tooth will cost you more next year
  4. Mylan’s 3Q profit triples on strong U.S. sales
  5. Bayer profit edges higher, raises forecasts
  6. Radiation detection of drilling waste nearly set at W.Va. landfills
  7. Profit falls at vitamin retailer GNC Holdings in third quarter
  8. Highmark’s new REMWorks Sleep Store will sell sleep apnea equipment
  9. CCAC, Energy Innovation Center respond to energy industry’s growing demand
  10. Roundup: WesBanco to acquire ESB Financial for $324M; PNC to replace credit cards used during Home Depot breach; more
  11. Apple CEO Tim Cook: ‘I’m proud to be gay’
Subscribe today! Click here for our subscription offers.