In a volatile day on Wall Street, stocks closed higher Tuesday after a roller-coaster session saw the major indexes take big swings in both directions.
Investors were torn as reports of rising tensions in Ukraine wrestled for attention with signs of better-than-expected U.S. corporate earnings.
Initially, investors sent stocks higher on profit reports from Coca-Cola and Johnson & Johnson that met or beat Wall Street expectations. But news that Ukraine troops seized an airfield from pro-Russian forces dampened enthusiasm and stocks reversed course and plunged.
Then stocks crawled back again in afternoon trading and closed the session posting solid gains, adding to Monday's rally.
The Dow Jones industrial average rose 89.32 points, or 0.6%, to 16,262.56, after earlier rising as high as 16,273 and falling as low as 16,063. The Standard & Poor's 500 index gained 12.37 points, or 0.7% to 1,842.98. The Nasdaq composite index added 11.47 points, or 0.3%, to 4,034.16, climbing back from a low of 3,946.
In government bond trading, the yield on the 10-year Treasury note fell to 2.62%, down from 2.65% late Monday. The yield fell as low as 2.60% earlier in the day.
Johnson & Johnson reported that first-quarter profit rose 8% on rising prescription drug sales and lower costs. The results beat Wall Street expectations and the drug maker raised its earnings outlook. Shares rose 2.1% to $99.20.
Coca-Cola's first-quarter earnings and revenue fell but profit met expectations and revenue came in better-than-expected. Coca-Cola shares jumped 3.7% to $40.18.
"So far earnings season has progressed nicely. We're looking for healthy earnings growth and, so far we're getting it," said Anastasia Amoroso, global market strategist at JPMorgan Chase. "But there's a bit of a tug-of-war with what's happening internationally."
After the markets closed, Yahoo reported earnings that beat estimates and shares jumped in after-hours trading.
In economic news, lower gasoline prices kept consumer inflation in check in March and offset higher food and clothing costs. The Labor Department said that the consumer price index rose 0.2% in March, after scant 0.1% increases the previous two months.
But a survey showing that homebuilders' confidence in the housing market remains low added to the negative sentiment.
European markets also fell sharply on the rising tensions in Ukraine as Germany's DAX index plunged 1.8% to 9,173.71. Britain's FTSE 100 dropped 0.6% to 6,541.61 and France's CAC 40 was down 0.9% to 4,345.35.
Asian stocks were mixed Tuesday as worries about China's economy put a damper on markets. Tokyo's Nikkei 225 rose 0.6% to close at 13,996.81 but Hong Kong's Hang Seng dropped 1.6% to 22,671.26.
China's Shanghai Composite Index fell 1.4% to 2,101.60 as a drop in China's money supply unnerved investors ahead of first quarter economic growth figures.
China's leaders are targeting growth of 7.5% this year for the world's second-biggest economy. But exports and imports have been weak in the first quarter, suggesting the economy is slowing and raising the risk of job's losses. China's growth of 7.7% last year tied 2012 for the slowest since 1999.
Monday, the Dow Jones industrial gained 146.49 points, or 0.9% to 16,173.24 and the Standard & Poor's 500 rose 14.92 points, or 0.8%, to 1,830.61. The Nasdaq composite, which suffered its worst weekly decline since June 2012 last week, rose 22.96 points, or 0.6% to 4,022.69.
MONDAY MARKETS: Stocks rally on Citi earnings 'beat,' retail sales
Contributing: The Associated Press
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