NEW YORK — Wall Street ended an erratic session with a big advance Tuesday as investors uneasy about the economy were reassured by solid earnings from blue chip names including Apple Inc. and American Express Co. The Dow Jones industrial average rose more than 100 points.
Technology stocks were among the biggest gainers after Apple surpassed analysts’ expectations with a 67 percent jump in fiscal fourth-quarter profit on strong sales of Macintosh computers, iPods and iPhones. Two Dow components – American Express, one of the largest credit-card companies, and chemicals maker DuPont Co. – posted better-than-expected profit gains as well.
But comments from DuPont chief executive Charles O. Holliday Jr. that the company doesn’t expect a recovery in the housing market next year reminded investors of the still uneasy forecasts for the economy. Holliday’s remarks helped pull the major indexes down from their session highs before the indicators rebounded in afternoon trading.
“Housing is obviously still a big concern, and the question is, how much does it spill over into the rest of the economy?” said Alexander Paris, economist and market analyst for Chicago-based Barrington Research. “I think the trend for the market is down unless investors see something positive, and the market drifts back up again.”
He said investors were also adjusting their positions ahead of key housing data this week.
On Thursday, the National Association of Realtors will release its existing home sales report, while the Commerce Department reports new home sales a day later.
The Dow rose 109.26, or 0.81 percent, to 13,676.23.
Broader stock indicators also had solid gains. The Standard & Poor’s 500 index rose 13.26, or 0.88 percent, to 1,519.59; the Nasdaq composite index rose 45.33, or 1.65 percent, to 2,799.26.
Higher energy prices and a weakening dollar are also hanging over the market. Treasury Secretary Henry Paulson said in a speech Tuesday that China must allow its currency, the yuan, to gain value more quickly to counter imbalances and make monetary policy more effective in responding to inflation.
“Bold structural policies are needed to shift China’s growth away from heavy industry, high energy use and dependence on exports towards greater reliance on domestic demand, greater production of services and greater provision of material well-being to China’s population,” Paulson said.
Analysts say investors are also looking for the Federal Reserve to throw them a lifeline when it meets next week to decide the future of rates. Wall Street widely expects the central bank will again lower rates after its half-point cut in September.
“I think you’re going to see trading will be really choppy between now and next week’s Federal Reserve meeting,” said Scott Fullman, director of investment strategy for I.A. Englander & Co.
