Speculation Fed will boost economy pushes stocks up

Stocks advanced Tuesday, rebounding from Monday’s decline, amid speculation the Federal Reserve will take steps to stimulate the economy and after the European Central Bank endorsed a plan to guarantee bank deposits.

The S&P 500 advanced 1.2 percent to 1,324.18. The Dow Jones Industrial Average increased 162.57 points, or 1.3 percent, to 12,573.80.

The Nasdaq composite index rose 33.34 points, or 1.2 percent, to 2,843.07.

“It has been a bit schizophrenic,” said Mark Luschini, chief investment strategist for Philadelphia-based Janney Montgomery Scott. “What’s taking place in the Spanish bond market is troubling. Yet pessimism is so high that the prospect of any relief would be enough to jump-start a rally in equities.”


New Orleans paper to lay off 200 as print schedule is cut

The Times-Picayune of New Orleans said Tuesday 200 employees will lose their jobs when one of the nation’s oldest daily newspapers shifts its focus to online news and publishes just three days a week beginning this fall.

The paper said 84 of the newsroom’s 173 employees were cut at the 175-year-old paper. Advertising, circulation and other departments also were affected. The change means New Orleans will become the largest metro area in the nation without a daily newspaper in the digital age.

In Alabama, three major daily newspapers laid off about 400 employees. It wasn’t immediately clear what departments were hit hardest at The Birmingham News, the Press-Register in Mobile and The Huntsville Times.

All four papers will continue to publish on their websites, and online access will remain free.

The newspapers’ parent company, Advance Publications, is shifting its focus in the digital age. Papers have struggled in recent years as print advertising declined during the recession, and newspapers have yet to learn how to make online advertising as profitable as its printed counterpart.


Facebook’s own research points to advertising benefits

Facebook is rebuffing claims that its advertisements are ineffective. It’s come out with its own research results, which show that most ad campaigns get companies $3 for every $1 they spend.

The new data released by the social network company was released Tuesday together with ComScore in a report that also shows how Facebook ads have helped companies including Starbucks and Target.

Facebook said its research shows that 70 percent of ad campaigns will get advertisers a return three times what they put in, and in nearly half of all campaigns, Facebook ads get companies $5 for every $1.

The report also showed people who “Like” Target were more likely to buy from the company 21 percent more frequently, and people who saw unpaid marketing messages from Starbucks made purchases 38 percent more often than those who didn’t.