U.S. stocks soared while markets in Europe continued their turmoil Tuesday, in a demonstration of the latest volatility in global financial markets.
Stocks pushed to session highs as dovish comments from a Federal Reserve Bank president offset mounting worries about Spain's banking system. Brendan Conway has details on The News Hub. Photo: Reuters.
The Dow Jones Industrial Average surged 162.57 points, or 1.3%, to 12573.80.
The jump erased Monday's 143-point slide. But it also came in the face of a bleak day in Europe, where worries increased about Spain's ability to work its way through its debt troubles. Yields on Spanish debt rose to record highs as prices fell. Italian debt yields also jumped.
But U.S. stock investors kept the Dow in positive territory all day. Analysts and investors struggled to give a reason for the rebound.
Some cited comments by Chicago Federal Reserve Bank President Charles Evans, who reiterated his support for more monetary easing by the central bank. Others said a report later in the day from Europe's central bank in support of a banking union also helped propel markets. Others said that stocks had fallen so far, that they were primed for a bound.
The moves show how focused many investors have become on any tidbit of news.
"A headline breaks and everybody tries to get in front of everyone else," said Brian Lazorishak, portfolio manager at Chase Investment Counsel.
Still, investors warned that Tuesday's move could be temporary. Markets continue to take their cues from Europe, and some strategists are predicting volatile trading ahead of a key election in Greece this weekend. The vote could determine the country's future in the 17-nation euro currency bloc.
Financial stocks saw a late surge as an executive from Bank of America BAC +2.88%said that capital-market conditions in the second half of this year are shaping up to be better than last year. Bank of America rose 21 cents, or 2.9%, to $7.49. J.P. MorganJPM +2.89% added 95 cents, or 2.9%, to 33.77.
The Standard & Poor's 500-stock index jumped 15.25 points, or 1.2%, to 1324.18. Materials led the way as all 10 of the S&P 500's sectors closed higher. BoeingBA +3.52% shot up 2.47, or 3.5%, to 72.58 and led among the Dow stocks after analysts at Bernstein raised its stock recommendation to "outperform," citing a better outlook for the firm's 787 Dreamliner.
The Nasdaq Composite added 33.34 points, or 1.2%, to 2843.07.
Among stocks in the news, Apple AAPL +0.87% added $4.99, or 0.9%, to $576.16 after unveiling a series of software features for its mobile phones and computers at the company's annual developer conference on Monday. A new mapping and navigation service, to be provided by Dutch navigation-equipment maker TomTom, will replaceGoogle GOOG -0.60% Maps as the default on iPhones and iPads.
![[panmkt0612]](http://si.wsj.net/public/resources/images/OB-TI232_panmkt_D_20120612081525.jpg)
Reuters
Traders work on the floor of the New York Stock Exchange.
Facebook FB +1.46% rose 39 cents, or 1.5%, to 27.40 as the company defended itself against claims the advertising on the social network doesn't work.
Shares of Zynga ZNGA -10.27% slumped to a fresh all-time low, dropping 57 cents, or 10%, to 4.98. An analyst report by Cowen said that the number of Zynga's daily users declined in May for the second month in a row.
Texas Instruments TXN +2.13% gained 59 cents, or 2.1%, to 28.24 after the company's second-quarter earnings and revenue outlooks exceeded analysts' expectations.
Michael Kors Holdings KORS +7.65%rose 2.92, or 7.7%, to 41.10 after the luxury retailer reported quarterly earnings more than doubled, beating expectations. The company also issued guidance that was more positive than expected.
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