U.S. stocks rose on Tuesday, as positive earnings news and consumer confidence data drove the Dow average to its biggest percentage gain in about a month, but the rally sapped money from fixed-income securities, and bond prices fell.
The dollar gained broadly after the Conference Board, a private business research group, reported a rise in U.S. consumer confidence in January. But the dollar's advance sent gold prices lower, as a stronger U.S. currency makes dollar-priced gold less attractive to overseas buyers.
Oil prices rose to nearly $50 a barrel after a fire at a big refinery in Louisiana slowed production there, adding to recent gains from a deep freeze in the U.S. Northeast.
Stocks snapped a four-day losing streak, rebounding as earnings from companies like Johnson & Johnson and DuPont Co. prompted investors to buy equities.
Diversified health-care company J&J rose 3.6 percent to $63.68, while DuPont, the No. 2 U.S. chemical maker, rose 1.2 percent to $46.58. Both companies reported fourth-quarter earnings that beat analysts' estimates.
The Dow Jones industrial average was up 92.95 points, or 0.90 percent, to close at 10,461.56. The Standard & Poor's 500 Index was up 4.66 points, or 0.40 percent, to finish at 1,168.41. The Nasdaq Composite Index was up 11.25 points, or 0.56 percent, to end at 2,019.95.
"It reflects a number of positive earnings reports and a somewhat oversold stock market," said Michael Sheldon, chief market strategist at New York brokerage Spencer Clarke. "The consumer confidence data was pretty positive."
After the closing bell, Texas Instruments Inc.(TXN.N: Quote, Profile, Research) , the world's largest maker of chips for cell phones, reported earnings that topped a forecast it gave in December. The company also said its board had authorized $2 billion in stock buybacks. Its stock, which had been halted for about an hour after the close, rose about 1 percent on the Inet electronic brokerage system to $21.35 from its close at $21.12 on the New York Stock Exchange.