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Rebound: Dow Closes 72 Points Higher After Plunge

Things were looking up at the New York Stock Exchange on Tuesday as the Dow rebounded from Monday's big drop.
Things were looking up at the New York Stock Exchange on Tuesday as the Dow rebounded from Monday's big drop. Richard Drew / AP

Stocks climbed on Tuesday, rebounding somewhat from the prior day's brutal rout that shaved more than 2 percent off the Dow and other major indices.

The Dow Jones Industrial Average, which had plunged 326 points on Monday, finished unofficially 72 points higher, halting a four-session run of triple-digit moves.

Consumer discretionary and health care fared best and utilities lagged among the 10 major sectors on the S&P 500, which gained 13 points. The Nasdaq rose 34 points.

"Today is just a bounce. I don't think there is really that much behind it, other than some bargain hunters stepping in," said Robert Pavlik, chief market strategist at Banyan Partners.

Starting with the manufacturing report out a China a few weeks ago, and continuing with trouble in other emerging-market countries including Turkey and Argentina, "put it all together, and it's a good excuse to sell some stocks and get this correction going," said Pavlik, who believes the decline did not end with Monday's rout.

Equities maintained their gains even after data showed factory orders fell 1.5 percent in December after a 1.5 percent gain in November.