After Market: U.S. Stocks Start to Rebound as Emerging Markets Stabilize

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Blue chip stocks bounced back Tuesday from the recent wave of selling. Emerging markets, which had been pummeled in recent sessions, also stabilized -- and that allowed U.S. investors to focus on some upbeat earnings reports at home.

The Dow Jones industrial average (^DJI) gained 90 points, snapping a five day losing streak. The Standard & Poor's 500 index (^GPSC) rose 11, and the Nasdaq composite (^IXIC) added 14 points, despite a big drop by Apple (AAPL), which tumbled more than 8 percent when iPhone sales failed to live up to expectations. There's concern the company is no longer on the leading edge of consumer must-have products.

That dragged down a number of iPhone suppliers too. Cirrus Logic (CRUS) fell 5 percent, while Qualcomm (QCOM) and Skyworks (SWKS) both lost more than 1 percent.

This is the busiest week of the earnings season, and there were some upside surprises too. Pfizer (PFE) rose 2.5 percent. American Airlines (AAL) jumped 5.5 percent. And Comcast (CMCSA) gained 1.5 percent. Its net was actually below forecasts, but the company raised its dividend and said it may expand overseas.

D.R. Horton (DHI) jumped nearly 10 percent, leading a rally among homebuilders. Lennar (LEN), KBHome (KBH), Toll Brothers (TOL), Pulte (PHM) and Beazer (BZH) also rallied.

Ford (F) shares were little changed despite good quarterly numbers. DuPont (DD) fell 1 percent even though earnings topped expectations. U.S. Steel (X) also fell 1 percent as its loss widened. And Seagate Technologies (STX), which makes computer storage equipment, fell 11 percent.

Elsewhere, Netflix (NFLX) rose more than 6 percent on a Wall Street Journal report that it's looking to expand to Europe. Its stock is now up 148 percent from a year ago.

Texas Industries (TXI) gained 3 percent after agreeing to be acquired by Martin Marietta Materials (MLM), which rose 4 percent.

The trucking company YRC Worldwide (YRCW) rallied 13 percent after resolving a contract dispute with the Teamsters union.

Facebook (FB) rose 3 percent on a Cowen upgrade ahead of its earnings report on Thursday.

And Abercrombie & Fitch (ANF) rose 5 percent. It stripped its CEO of the chairman's job, and dropped a poison-pill provision that had been in place to make a buyout more difficult.

What to Watch Wednesday:
  • Federal Reserve policymakers meet to set interest rates.
These major companies are due to report quarterly financial results:
  • Boeing (BA)
  • Chrysler
  • Deutsche Bank (DB)
  • Dow Chemical (DOW)
  • Facebook (FB)
  • Las Vegas Sands (LVS)
  • Novartis (NVS)
  • Qualcomm (QCOM)
  • WellPoint (WLP)
-Produced by Drew Trachtenberg.


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9 Comments

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Jcwfuntime

Emergin markets are not the reason for the rebound! What did the world change in one day? No, not at all. The reason is that people panicked, and sold off, insead of "Staying the Course"!! If people would just trust their investments, and stay the course we would all make money. The economy is set and wants to go forward. "Don't keep Selling Off"!!

January 30 2014 at 4:54 PM Report abuse rate up rate down Reply
alfredschrader

While the media is gushing over the White House State of the Union luncheon menu, here is the inside scoop on this. Cara Cara oranges are basically blood oranges, good but not the best.
The best are Mineola Tangelos (honey bells) which grow on my estate near the Indian River here in Florida. Piedmontesa beef is beef with less marbling - basically low-fat meat - great for your waist line but like most low-fat products, lacking. Fat is what gives any meat the taste. At least the correspondents got meat. Word on the street is all you can from the White House kitchen is salads. Poor Joe Biden can\'t even get cold cuts.

January 29 2014 at 5:26 AM Report abuse rate up rate down Reply
ga7smi

emerging markets have suddenly stabilized - BS

January 29 2014 at 2:17 AM Report abuse +1 rate up rate down Reply
SPQR

Net flix was a buy I wonder who got all that stock after they trashed them last year and forced the price down ..attention SEC please check into that

January 29 2014 at 12:34 AM Report abuse rate up rate down Reply
SPQR

PS China has emerged

January 29 2014 at 12:29 AM Report abuse rate up rate down Reply
SPQR

Thank god China stabilized over night !!! Amazing. Now we can take more of that free money from the Fed and pour it in to the market then take profits YAY

January 29 2014 at 12:28 AM Report abuse rate up rate down Reply
betty_brock

Why do they keep deleting my post about Obama wanting to run the country by himself. It is just what he said.

January 29 2014 at 12:08 AM Report abuse +1 rate up rate down Reply
betty_brock

Obama wants to run the country all by himself. What happened to checks and balances?

January 29 2014 at 12:06 AM Report abuse rate up rate down Reply
betty_brock

Watching Obama's speech tells you that he wants to run the country all by himself.

January 29 2014 at 12:05 AM Report abuse rate up rate down Reply
betty_brock

Wow, call Obama a dictator and they pull your post. Is that proof or what?

January 29 2014 at 12:04 AM Report abuse +1 rate up rate down Reply