Friday, March 7, 2014
NEW YORK - U.S. stocks closed with substantial gains Tuesday, rebounding from their hardest knock this year as first-quarter reports from companies including Coca-Cola Co. beat expectations.
On Tuesday, the Dow Jones industrial average recouped a large chunk of its 265-point loss the prior day, rising 157.58 points to 14,756.78 for its best session in nearly seven weeks. The S&P 500 index added 22.21 points to 1,574.57. The Nasdaq composite rose 48.14 points to 3,264.63. Treasury prices slid, with the yield on the benchmark 10-year note used in determining mortgages and other consumer loans rising to 1.72 percent.
Share of Dell Inc. were flat after the personal-computer maker said a special committee of its board had reached an agreement with billionaire investor Carl Icahn to cap his share ownership as Dell mulls takeover offers from Icahn's firm as well as from a group led by CEO Michael Dell and from buyout specialist Blackstone Group.
Shares of Coca-Cola Co. rose 5.7 percent after the beverage maker reported first-quarter results that beat expectations, while retailer Target Corp. warned first-quarter earnings would come in below expectations, taking a toll on Target shares.
"Fundamentally we feel good about the earnings that are coming through, and it looks like it's going to be the same as the last few quarters," with roughly 60 percent beating expectations, 20 percent matching and 20 percent falling short, said Chip Cobb, portfolio manager at BMT Asset Management at the Bryn Mawr Trust Co. in Bryn Mawr, Pa.