Stocks rebound on positive data


U.S. stocks jumped Tuesday, recovering much of Monday’s losses and picking up momentum from solid economic indicators.

The Dow Jones industrial average finished 99.22 points higher, or 0.71 percent, at 13,979.30. The S&P 500 index climbed 15.58, or 1.04 percent, to 1,511.29, while the tech-rich Nasdaq index rose 40.41, or 1.29 percent, to 3,171.58.

The Dow blue-chip members almost universally rose, with the biggest gains coming from UnitedHealth Group at 3.7 percent, Bank of America at 3.4 percent, JPMorgan Chase at 2.3 percent and American Express at 2.1 percent. Some companies on the Nasdaq also performed well, with Apple jumping 3.5 percent and BlackBerry 7.6 percent.

McGraw-Hill, the owner of S&P, nosedived 10.7 percent to post its second straight sharp daily decline after the Department of Justice sued S&P over its ratings of mortgage bonds in 2007. Archrival Moody’s was also swept up in the negativity, dropping 8.8 percent even though it was not listed in the complaint.

In Europe, stock markets pushed higher Tuesday after new indicators suggested the 17-country eurozone is past the worst of its recession and that the U.S. recovery remains on track. A survey of the manufacturing and services sector across Europe’s single currency bloc showed activity rose to a 10-month high in January.

By the time Europe’s markets closed Tuesday, Germany’s DAX stock index was up 0.35 percent at 7,664 while France’s CAC 40 was 0.95 percent higher at 3,694. Britain’s FTSE 100 was up 0.58 percent at 6,282.

Spanish and Italian indexes, which led world markets lower Monday due to concerns over the political situation in both countries, also rallied. Madrid’s IBEX closed 2.2 percent higher and the FTSE MIB in Milan was up 1.05 percent.