US stocks rise slightly in morning trading

ALEX VEIGA AP Business Writer Published:

U.S. stocks notched slight gains Tuesday, with investors taking the opportunity to buy back into the market a day after it suffered its biggest losses in more than seven months.

KEEPING SCORE: The Dow Jones industrial average was up 36 points, or 0.2 percent, to 15,409 at 10:57 a.m. Eastern time. The Standard & Poor's 500 index rose seven points, or 0.4 percent, to 1,749. The Nasdaq composite gained 20 points, or 0.5 percent, to 4,017.

TENTATIVE REBOUND?: Markets were coming off a drop of more than 320 points for the Dow and the blue-chip index's worst January performance in five years following disappointing news about U.S. manufacturing.

"After this whole year of being down over 5 percent, I think the markets are trying to rally," said David Chalupnik, head of equities for Nuveen Asset Management. "I don't know if it holds through the day."

MACRO MESS: Financial markets in developing countries like Turkey and Argentina have been shaken in recent weeks by concerns that growth will slow and money will flow out of their economies as the U.S. Federal Reserve tightens its monetary policy. That has knocked down many stock markets, which were ripe for a pullback after big gains in 2013.

OVERSEAS: The Nikkei tumbled 4.2 percent to 14,008.47 and is down 14 percent over the past month. Hong Kong's Hang Seng declined 2.9 percent to 21,397.77 on its first day of trading following a 4-day weekend for the Lunar New Year. Markets in China and Taiwan remain closed. The FTSE 100 index of leading British shares eased 0.1 percent at 6,456 while Germany's DAX fell 0.7 percent to 9,120. The CAC-40 in France rose 0.1 percent to 4,113.

KORS ON TOP: Michael Kors is surging $14.34, or 19 percent, to $91.02 after the fashion retailer reported third-quarter net income rose 77 percent. The company topped Wall Street expectations.

MICROSOFT MOVES: Microsoft named Satya Nadella as its new CEO. Company founder Bill Gates is stepping down as chairman and will become a technology adviser to Microsoft. Shares rose 8 cents, or 0.2 percent, to $36.56.

TREASURIES: The yield on the 10-year Treasury note climbed to 2.63 percent from 2.58 percent on Monday. The yield has dropped from 3 percent at the start of the year as investors have bought bonds amid concern that U.S. growth is slowing after a strong fourth quarter.

HOME SALES BOOST: U.S. homebuilders were trading higher on a report by real estate data firm CoreLogic that showed U.S. home prices climbed 11 percent in December from a year earlier.