Market rebounds after worst day of year
A strong report on housing and good quarterly earnings from several major companies helped the stock market rebound after its worst day of the year.
The Dow Jones industrial average rose 157.58 points, or 1.1 percent, Tuesday to 14,756.78, winning back more than half of the 265 points it lost a day earlier. The Standard & Poor’s 500 index climbed 22.2 points, or 1.4 percent, to 1,574.57.
Home construction at an annual rate exceeded 1 million last month for the first time since June 2008. Robust earnings from companies that included Coca-Cola and W.W. Grainger also propelled the market higher.
Monday’s market decline was the biggest since Nov. 7, the day after Election Day. Worries about an economic slowdown in China led to a drop in the price of oil, copper and other commodities, causing mining and energy stocks to fall. The rally already had slowed earlier this month after reports of weak hiring and retail sales suggested that the economy was cooling off.