NEW YORK (Reuters) - U.S. stocks rose on Tuesday, with the Dow rising above 14,000, as earnings came in stronger than expected and investors sought bargains a day after the market's biggest drop since November.
Major stock indexes fell about 1 percent in Monday's selloff, pressured by renewed worries over the euro zone's sovereign debt crisis. Still, equities have been strong performers recently, with the benchmark S&P 500 index up about 5 percent for 2013.
Wall Street has advanced on strong fourth-quarter earnings and signs of improved economic growth, suggesting the market's longer-term trend remains higher.
"Yesterday was the first real down day of the year, which shows that we are in this strong bull market. Today we are back to the normal pattern. People are realizing that we've overreacted to Europe yesterday," said Uri Landesman, president of Platinum Partners in New York.
"Money in the euro, euro bonds and euro stocks are coming back to the good, old U.S. stock market and 1,545 (on the S&P 500) is the short-term target, probably in the first half of the year."
The Dow Jones industrial average <.DJI> was up 110.50 points, or 0.80 percent, at 13,990.58 after rising as high as 14,006. The Standard & Poor's 500 Index <.SPX> was up 13.42 points, or 0.90 percent, at 1,509.13. The Nasdaq Composite Index <.IXIC> was up 30.96 points, or 0.99 percent, at 3,162.13.
Archer Daniels Midland
Estée Lauder Cos Inc
According to Thomson Reuters data, of the 53 percent of S&P 500 companies that have reported earnings thus far, 69 percent have beaten profit expectations, over the 62 percent average since 1994 and the 65 percent average over the past four quarters.
Fourth-quarter earnings for S&P 500 companies are expected to rise 4.5 percent, according to the data, above the 1.9 percent forecast at the start of earnings season but well below the 9.9 percent forecast on October 1.
The S&P is less than 5 percent away from its all-time intraday high of 1,576.09, reached in October 2011.
The stock has dropped more than 20 percent over the past two days.
U.S. shares of BP Plc
The Institute for Supply Management's non-manufacturing index was 55.2 in January, as expected and down slightly from the previous month.
(Reporting By Angela Moon; Editing by Kenneth Barry)
(c) Copyright Thomson Reuters 2013. Check for restrictions at: http://about.reuters.com/fulllegal.asp