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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.
Economic reports on Wednesday were more likely to be market moving, with the ADP employment report coming ahead of Friday's non-farm payrolls report for January. Another report on the services sector could shed light on a portion of the economy that is less sensitive to weather.
On the earnings front, Yum Brands shares rose almost 9 percent after the fast-food retailer posted quarter profit that exceeded expectations. And Michael Kors Holdings surged 17 percent after the handbag and accessories retailer hiked its profit and sales outlook.
J.C. Penney shares fell 10 percent, turning course on premarket gains, after the retailer reported a modest gain in quarterly comparable sales but offered no details on gross profit margin.
"There is some discretionary spending going on, if there is a company that personifies discretionary spending," said Pavlik of the results posted by Michael Kors.
The dollar edged higher against the currencies of major U.S. trading partners; the yield on the 10-year Treasury note used in figuring mortgage rates and other consumer loans rose 4 basis points to 2.625 percent.
U.S. stocks were hammered on Monday after a disappointing report on factory activity, increasing worries about the economy ahead of Friday's monthly jobs report.
On Tuesday, Fed Bank of Richmond President Jeffrey Lacker said the drop in global equities was unlikely to divert the Federal Reserve from trimming its monthly asset purchases.