By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose sharply Tuesday after
their worst session since November as investors considered a deal
by Dell Inc. to be taken private and quarterly earnings that beat
estimates.
After briefly clearing 14,000, a level last week breached for
the first time in more than five years, the Dow Jones Industrial
Average (DJI) was up 116.53 points, or 0.8%, to 13,996.61.
The S&P 500 index (SPX) climbed 13.63 points, or 0.9%, to
1,509.34.
The Nasdaq Composite (RIXF) advanced 29.31 points, or 0.9%, to
3,160.49.
For every stock that fell, three advanced on the New York Stock
Exchange, where 184 million shares traded as of 10:55 a.m.
Eastern.
The momentum for U.S. equities for the remainder of the year is
a favorable one, Jim O'Neill, Goldman Sachs Asset Management
chairman, told CNBC Tuesday.
Archer-Daniels-Midland Co. (ADM) gained after reporting
quarterly profit that beat forecasts. Kellogg Co. (K) shares gained
2% after the cereal maker reported less of a quarterly loss. Yum
Brands Inc. (YUM) fell 3.7% after the owner of the Pizza Hut chain
reduced its profit outlook.
Virgin Media Inc. (NTLID) jumped almost 17% after the U.K.
pay-television provider said it was in talks with Liberty Global
Inc. (LBTYA) about "a possible transaction."
Dell Inc. (DELL) shares rose 0.8% after the personal-computer
maker agreed to be taken private in a deal valued at $24.4
billion.
U.S. home prices climbed 0.4% in December to bring the
year-on-year gain to 8.3%, the best advance since May 2006,
CoreLogic reported Tuesday.
The Institute for Supply Management's services index fell to
55.2% in January from 55.7% in December. Any number above 50%
signals expansion.
When considered in combination with the better-than-expected
manufacturing report last week, "one can't help but feel that the
private-sector economy is holding up fairly well despite the public
sector's best efforts to cause turbulence," Dan Greenhaus, chief
global strategist at BTIG LLC, emailed after the data.
U.S. stocks fell hard Monday on worries about Europe's handling
of its debt crisis, with Spain's Mariano Rajoy facing calls from
opposition leaders that he step down.
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