Apr 15, 2014 4:58 PM GMT (Bloomberg)
U.S. stocks rose a second day, after equities posted the worst week since 2012, as earnings from Coca-Cola Co. and Johnson & Johnson overwhelmed concerns that tensions in Ukraine are worsening.
The Nasdaq Composite Index gained 0.3 percent, erasing an earlier drop of 1.9 percent after nearing its average price in the past 200 days. Coca-Cola gained 3.7 percent as global volume sales increased. Johnson & Johnson climbed 2.1 percent as the company raised its forecast for the year.
The Standard & Poor’s 500 Index climbed 0.7 percent 1,842.98 at 4 p.m. in New York, reversing a loss of 0.8 percent. The Dow Jones Industrial Average gained 89.32 points, or 0.6 percent, to 16,262.05. About 7.7 billion shares changed hands on U.S. exchanges, 10 percent above the three-month average.
“Stocks are having meaningful moves in both directions because people are nervous on both sides,” Michael James, a Los Angeles-based managing director of equity trading at Wedbush Securities Inc., said in a phone interview. “Subjectivity plays such a pivotal role, and emotions, in what’s been going on in this market that it’s hard to pinpoint what causes a turn in the direction.”
The S&P 500 yesterday briefly erased a 1 percent gain, as technology shares dipped, before closing higher to halt a two-day slide. The index has dropped 2.5 percent from its April 2 record as selling from Internet and biotechnology stocks, the best performers in a five-year rally, spread to the broader market.