U.S. Stocks Rise as Oil Changes Course Again and Soars

NEW YORK (AP) -
Traders gather at a post on the floor of the New York Stock Exchange Tuesday. (AP Photo/Richard Drew)
Traders gather at a post on the floor of the New York Stock Exchange Tuesday. (AP Photo/Richard Drew)

U.S. stocks are rising Tuesday as the price of oil makes another abrupt reversal, this time rising more than 6 percent after falling by about that much a day ago. Banks are also climbing, and consumer stocks are getting a lift from strong fourth-quarter results from companies like Procter & Gamble and handbag maker Coach.

KEEPING SCORE: The Dow Jones industrial average rose 272 points, or 1.7 percent, to 16,157 as of 1:30 p.m. Eastern time. The Standard & Poor’s 500 index climbed 27 points, or 1.5 percent, to 1,903. The Nasdaq composite added 59 points, or 1.3 percent, to 4,577.

ENERGY RISES: Energy stocks made early gains as the price of U.S. crude rose $1.96, or 6.5 percent, to $32.30 a barrel in New York. It fell almost 6 percent Monday. Brent crude, a benchmark for international oils, gained $2.14, or 7 percent, to $32.64 a barrel in London. Exxon Mobil picked up $2.53, or 3.4 percent, to $76.52 and Chevron rose $3.35, or 4.1 percent, to $84.24.

IN THE BAG: Luxury handbag maker Coach reported a greater profit than analysts had expected, and its stock rose $3.53, or 11.6 percent, to $33.88. Even with that big gain, however, it’s down 9 percent over the last 12 months.

3M POSTS GROWTH: The maker of Post-it notes, industrial coatings and ceramics reported a greater profit and more revenue than analysts expected. 3M also backed its annual profit forecast. It rose $6, or 4.4 percent, to $143.57.

P&G PRICE GAINS: Consumer goods maker Procter & Gamble reported a larger profit in the fourth quarter as it raised prices and cut costs. The maker of Pantene shampoo, Crest toothpaste and Charmin bathroom tissue added $2.02, or 2.6 percent, to $78.87.

BANKED: Huntington Bancshares agreed to buy competitor FirstMerit Corp for $3.4 billion. The deal would create the largest bank in Ohio, and the companies would have about $100 billion in combined assets. FirstMerit added $2.63, or 17.1 percent, to $18 and Huntington lost 82 cents, or 9.3 percent, to $7.98.

GOING TO THE ATM: Zions Bancorp added 91 cents, or 4.5 percent, to $21.40 after it reported strong fourth-quarter results on Monday. Goldman Sachs gained $4.12, or 2.7 percent, to $155.24.

DOW POWER: The Dow is doing particularly well because many of the companies making the biggest gains, including 3M, Procter & Gamble, Exxon, Chevron and Goldman Sachs are all Dow components. The Nasdaq is making smaller gains because tech stocks are little changed.

FULL SPRINT: Sprint, the fourth-largest wireless provider in the U.S., posted a smaller loss in its third quarter and said its aggressive promotions lured more users. The company raised its outlook for the year.

Sprint stock rose 52 cents, or 20.9 percent, to $3.05. The stock, which hit an all-time low last Wednesday, has been on a wild ride the last few days, jumping almost 15 percent Friday and then falling 12 percent Monday, when Sprint said it had cut about 2,500 jobs since last fall, or 8 percent of its staff.

BUMPY LANDING: Lockheed Martin said it will acquire the engineering company Leidos, combine it with its information systems and global solutions unit, and then separate that company so it can focus on its remaining aerospace and defense business. The stock shed $3.78, or 1.8 percent, to $207.23.

CORNING CLIMBS: Specialty glass maker Corning added $1.11, or 6.6 percent, to $17.87 after it reported a greater profit and more revenue than analysts expected. The stock is on pace for its biggest one-day gain since October 2013.

HEART BEAT: Johnson & Johnson posted a larger fourth-quarter profit after it sold its Cordis heart device business. The company also makes products including baby shampoo, prescription medicines and medical devices. It rose $3.97, or 4.1 percent, to $100.37.

OVERSEAS: France’s CAC 40 rose 1.1 percent and Germany’s DAX picked up 0.9 percent. Britain’s FTSE 100 gained 0.6 percent. However Asian markets were hammered by Monday’s slide in oil prices, which can signal weak demand. The Shanghai Composite dropped 6.4 percent to finish at 2,749.78, the lowest since December 2014. Japan’s Nikkei 225 lost 2.4 percent to 16,708.90.

BONDS, CURRENCIES: The yield on the 10-year Treasury note was unchanged at 2.01 percent. The euro edged up to $1.0844 from $1.0837, and the dollar rose to 118.54 yen from 118.48 late Monday.