NEW YORK — Investors gave stocks a rebound Wednesday after getting reassuring words from the Federal Reserve and another batch of upbeat earnings reports.
The Dow Jones industrials rose 53 points, making back a quarter of the 213 it lost Tuesday.
Investors were able to shake off Standard & Poor’s downgrade of Spain’s debt, the third European country in two days to have its rating lowered. Instead, they focused on the domestic economy.
In an economic-assessment statement that accompanied the Fed’s decision to keep interest rates stable, the central bank said it expects to keep rates low for an “extended period” to help bolster the economy.
“The Fed essentially kicked the can down the road,” said Burt White, chief investment officer at LPL Financial in Boston.
Earnings provided a boost to stocks throughout the day. Cable company Comcast, defense contractor Northrop Grumman and Dow Chemical were the latest companies to top earnings expectations.
The Dow rose 53.28, or 0.5 percent, to 11,045.27. The Standard & Poor’s 500 index rose 7.65, or 0.7 percent, to 1,191.36, while the Nasdaq composite index rose 0.26, or 0.01 percent, to 2,471.73.
Tim Courtney, chief investment officer at Burns Advisory Group in Oklahoma City, said improving sales at companies such as Dow Chemical prove the economy is healing.
“It indicates consumers may be getting back on their feet,” Courtney said.
Wednesday’s trading was far quieter than on Tuesday, when the market plunged on news that S&P slashed its credit ratings for Greece and Portugal. Greece’s debt was cut to junk status.
European leaders calmed investors’ nerves early Wednesday. They said Greece would receive bailout money in time to cover $11.3 billion in debt payments due May 19.
But some analysts believe the debt problems could spread throughout the continent.
“Greece and Portugal will be Europe’s subprime problem,” said John Lekas, portfolio manager at Leader Capital in Portland, Ore.
After the close of trading, it was announced that Hewlett-Packard was buying smart-phone pioneer Palm for about $1 billion in cash.
