US stocks bounced back yesterday from the previous session’s steep losses as investors latched onto positive corporate and economic news, in the absence of a clear worsening in Europe’s debt crisis.
However, trading was volatile and volumes were thin as turmoil in Europe’s bond markets kept fears alive that the crisis could engulf Italy.
A brighter picture came from US companies. Merck raised its dividend and Cisco reported strong earnings, reinforcing the view that corporate America is showing strength even as problems in Europe weigh on investors’ minds.
The Dow Jones industrial average ended up 112.92 points, or 0.96 per cent, at 11,893.86. The Standard & Poor’s 500 Index was up 10.6 points, or 0.86 per cent, at 1,239.7. The Nasdaq Composite Index was up 3.5 points, or 0.13 per cent, at 2,625.15.