NEW YORK — Global stocks steadied and U.S. markets marched higher Tuesday, as investors were encouraged by strong results from UPS, Ford and other big companies.
The recovery comes after five straight days of losses for U.S. indexes. It’s not uncommon for stocks to reverse course after several days in one direction, and investors say the market is still lacking the foundation for an extended rally.
“We just don’t see any significant catalyst that will move this market higher, even after last week’s declines,” said Kristina Hooper, global market strategist with Allianz Global Investors.
The Dow Jones industrial average rose 189.68 points, or 1.09 percent, to 17,630.27, ending near its high for the day. The Standard & Poor’s 500 index rose 25.61 points, or 1.2 percent, to 2,093.25, and the Nasdaq composite rose 49.43 points, or 1 percent, to 5,089.21.
A dose of corporate earnings gains helped drive the advance Tuesday.
UPS rose $4.82, or 5.1 percent, to $99.94. The company saw profits jump from a year ago, helped by stronger business overseas.
Ford rose 28 cents, or 1.9 percent, to $14.83. The carmaker said profits jumped 44 percent in the second quarter, helped by higher global sales and higher prices.
Global markets were a little less stressed Tuesday.
The Shanghai Composite Index closed down 1.7 percent but had been trading down as much as 4 percent earlier in the day.
Traders were turning their attention to the U.S. Federal Reserve as they try to assess when interest rates will rise. Fed policymakers started a two-day meeting on Tuesday, but few central bank watchers expect a rate hike. Many expect the Fed to begin its next cycle of rate increases in September or December. Ultra-low interest rates have been a boon for stock and bond markets, and many questions remain about how markets will react to the first increase since the 2008 financial crisis.
