NEW YORK — The Dow Jones industrial average ended up 52 points following a report that European leaders are considering more aggressive programs to bail out weaker countries.
Broader market indicators were mixed. The Standard & Poor’s 500 rose 1 point, and the Nasdaq composite edged lower. Materials and health care companies rose the most. Agricultural-supplies company Monsanto rose 2.8 percent, and drugmaker Pfizer rose 2 percent.
Stocks were stuck in neutral for most of the day after S&P said it might downgrade the AAA rating of Europe’s bailout fund. A report in the Financial Times late in the afternoon sent the Dow up as many as 117 points. The newspaper reported that European leaders are considering making more financial aid available.
Investors remain cautious ahead of a summit of European leaders Thursday and Friday where the main task will be coming up with credible plans for preventing a simmering debt crisis from causing a breakup of the euro.
“We are coming to a head in Europe, and it’s no longer about the small countries like Greece,” said Paul Zemsky, chief investment officer at ING Investment Management.
He said current stock prices reflect traders’ expectations of a rate cut from the European Central Bank on Thursday and strong political action Friday. Any less than that, he said, and “it’s anyone’s guess how bad things will get, but they’ll get pretty bad.”
The Dow closed up 52.30 points, or 0.43 percent, at 12,150.13. Among its top performers was 3M, which rose 1.5 percent after the maker of Post-It notes forecast 2012 earnings that were stronger than many analysts expected.
The S&P 500 closed up 1.39 points, or 0.1 percent, to 1,258.47. The Nasdaq composite closed down 6.20, or 0.23 percent, at 2,649.56.
“There’s going to be volatility going forward, and it’s going to be difficult for countries to follow their commitments, but I think you finally crossed that point where they took enough steps that the markets will get the message” that there is a credible crisis-rescue plan in the works, said Robert Tipp, chief investment strategist with Prudential Fixed Income.
