By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose on Tuesday amid
positive earnings results, rebounding after three days of brutal
losses that sent the main benchmarks to their lowest levels in
months.
The S&P 500 on Monday closed at its lowest level since May
20 and fell below its 200-day moving average for the first time in
nearly two years. The S&P 500's breach of it's moving average
is significant because some market observers see it as a bearish
signal that the market may be in store for further declines.
Meanwhile, investors welcomed better-than-expected earnings
results from Citigroup Inc. and Johnson & Johnson, which
outweighed downbeat German sentiment data that hit equities across
Europe.
The S&P 500 (SPX) rose 14 points, or 0.7%, to 1,889.45. The
Dow Jones Industrial Average (DJI) added 109 points, or 0.7%, to
16,430.95. The Nasdaq Composite (RIXF) gained 45 points, or 1.1%,
to 4,258.12.
In economic data, National Federation of Independent Business
said its small-business optimism index fell 0.8 points to 95.3,
which is 5 points below the pre-recession average.
Vote here: Does this stock slump have further to go?
Earnings in focus: Citi (C) shares popped up 2.9% after
third-quarter profit and revenue rose from the year-earlier period.
Citi also plans to pare back from retail banking in smaller
countries.
Meanwhile, Wells Fargo & Co. (WFC) shares slipped 2.2% even
as the bank's quarterly profit met expectations but revenue beat
estimates.
J.P. Morgan Chase & Co. (JPM) swung to a third-quarter
profit as the bank rebounded from a year-earlier period in which it
was hit by big legal charges. The bank's profit per share and
revenue narrowly missed expectations. J.P. Morgan shares fell
1.7%.
Johnson & Johnson (JNJ) shares picked up 1.6% after
quarterly earnings climbed nearly 30% on higher pharmaceutical
sales.
Domino's Pizza Inc. (DPZ) was up 4.3% after the chain delivered
better-than-expected results.
Among other stocks in focus, Versar Inc. (VSR) surged 37%. Its
PPS unit makes hazmat suits and mobile decontamination shelters.
Other stocks linked to concerns over the Ebola virus continued a
pattern of pushing higher.
Lakeland Industries Inc. (LAKE) and Alpha Pro Tech Ltd. (APT)
fell more than 20%, after soaring during the previous few sessions
on Ebola fears. Ebola stock trading volumes should raise red
flags
Other markets:European stocks fell after a key sentiment survey
out of Germany turned negative. Burberry Group PLC shares dropped
after the luxury-goods maker posted a rise in sales, but cited
unfavorable foreign exchange headwinds and Chinese weakness. U.K.
inflation fell to a five-year low. The European Court of Justice
has begun holding a hearing on the European Central Bank's Outright
Monetary Transactions bond-buying program.
In Asia, the Nikkei 225 index sank 2.4%, falling below the
15,000 level and skidding to two-month lows.
Crude-oil prices(CLX4) drifted lower, and gold(GCZ4) inched up,
while the dollar ((USDJPY) pulled back from an overnight slip
against the Japanese yen.
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