Stocks rebounded modestly Tuesday, as investors found just enough to like in the day’s economic news to bid stocks higher.
Stocks started the day lower on a steep drop in durable orders that was led by falling computer, communications equipment and transportation orders, but better than expected existing home sales and soothing comments on the economy from Fed Chairman Ben Bernanke eventually encouraged buyers after Monday’s drubbing on holiday sales fears.
Palm fell 7.7% after warning of weaker than expected sales.
Apple gained 2.5% on a UBS upgrade.
Cisco was a big gainer, rising 5% on double average volume.
Tellabs fell 6% after Lehman Brothers lowered estimates on the company.
The Nasdaq gained 6 to 2412, the S&P 500 added 5 to 1386, and the Dow rose 14 to 12,136. Volume declined to 2.64 billion shares on the NYSE, but declined to 2.03 billion on the Nasdaq. Advancers led 21-11 on the NYSE, and 16-14 on the Nasdaq. Upside volume was 61% on the NYSE, and 51% on the Nasdaq. New highs-new lows were 140-24 on the NYSE, and 72-56 on the Nasdaq.
