Gains for retailers and small and medium-sized companies are leading U. S. indexes higher as investors’ fears about the Turkish currency crisis ease.
U. S. stocks are rallying Tuesday as worries about Turkey’s currency crisis eased. Retailers and smaller companies are making some of the biggest gains. Global markets have taken two days of losses as investors worried that the country’s troubles might spread.
KEEPING SCORE: The S&P 500 index climbed 18 points, or 0.7 percent, to 2,840 as of noon Eastern time. The Dow Jones Industrial Average gained 115 points, or 0.5 percent, to 25,302. The Nasdaq composite added 52 points, or 0.7 percent, to 7,872. The Russell 2000 index advanced 17 points, or 1 percent, to 1,692.
The S&P 500 fell a combined 1.1 percent Friday and Monday as investors worried that Turkey’s financial woes would affect other countries.
WEAVING A WIN: Tapestry, the parent company of Coach and Kate Spade, jumped after its fourth-quarter results surpassed analyst estimates. The stock surged 11.7 percent to $53.03.
Other retailers reported their results as well. Advance Auto Parts jumped 7.3 percent to $155.36 after its report. Competitor AutoZone picked up 3.3 percent to $753.70 and O’Reilly Automotive rose 1.8 percent to $320.17.
CALM: The Turkish lira stabilized as officials from Turkey and the U. S. said the countries are in talks to ease diplomatic tensions which have resulted in high tariffs on Turkish steel and aluminum. Economists say Turkey’s central bank still needs to raise interest rates significantly to strengthen its currency. President Recep Tayyip Erdogan has ruled out that step.
Emerging markets fell Monday on concern that Turkey’s currency turmoil could spread. The Argentine peso and India’s rupee hit record lows against the dollar. Those jitters eased later Tuesday.
Turkey’s ISE National 100 index rose 0.8 percent, while the Merval in Agentina climbed 1.4 percent. The RTS in Russia jumped 1.8 percent.
SMALL, BUT GOING BIG: Smaller and medium-sized companies fared better than big U. S. multinationals. Footwear maker Wolverine World Wide gained 1 percent to $37.87 and watchmaker Fossil rose 4.1 percent to $25.51.
Boston Beer picked up 2.7 percent to $287.90 and RV maker Thor Industries rose 2.4 percent to 96.90.
I-CAHN’T STOP YOU: Cigna and Express Scripts both rose after billionaire investor Carl Icahn said he’s ending his campaign to block the deal. He had urged Cigna shareholders to vote against the $52 billion acquisition of Express Scripts and said the price was far too high.
Health insurer Cigna added 1.4 percent to $184.32 and pharmacy benefits manager Express Scripts picked up 1.6 percent to $85.33.
WATER WORKING: SJW Group rose 5.5 percent to $65.86 after California Water Service Group made a new offer to buy it. The new bid values the parent of San Jose Water at $70 a share, or $1.44 billion. The company said its board will review the offer.
Cal Water gained 0.5 percent to $40.25. Its previous offer valued SJW Group at $68.25 per share.
BONDS: Bond prices moved lower. The yield on the 10-year Treasury note rose to 2.89 percent from 2.88 percent.
OVERSEAS: Germany’s DAX was little changed. The CAC 40 in France fell 0.1 percent and Britain’s FTSE 100 lost 0.2 percent.
Tokyo’s Nikkei 225 added 2.3 percent. Hong Kong’s Hang Seng declined 0.7 percent while Seoul’s Kospi advanced 0.5 percent.
ENERGY: Benchmark U. S. crude fell 0.2 percent to $67.06 per barrel in New York Mercantile Exchange. Brent crude, used to price international oils, rose 0.2 percent to $73.73 per barrel in London.
CURRENCY: The dollar rose to 110.89 yen from 110.69 yen. The euro fell to $1.1354 from $1.1394.