Stocks Opened Higher after Sell Off

Stocks rose at the open on Tuesday in a rebound from the previous session as investors aim to win back ground surrendered in the market’s recent turbulent downswing. The Dow Jones Industrial Average lately rose 79.77 points to 10,889.62. The Standard & Poor’s 500 Index added 9.36 points to 1,128.82. The Nasdaq Composite Index climbed 20.77 points to 2,378.46.

Federal Reserve officials may strengthen their commitment to record monetary stimulus as soon as today after a faltering economic recovery and a U.S. credit- rating cut provoked a rout in global stocks. By a 52 percent to 48 percent margin, respondents in a Bloomberg News survey said the Fed would ease policy this year through monetary tools or statement language.

U.S. workers were less productive in the spring for the second quarter in a row, a trend that may not bode well for future hiring. Productivity dropped 0.3 percent in the April-June quarter, following a decline of 0.6 percent in the first three months of the year, the Labor Department said Tuesday. It was the first back-to-back decline in productivity since the second half of 2008.

Any glimmer of hope that the housing market will stage a recovery in the upcoming months has vanished, thanks to the recent spate of bad economic news that has been making headlines over the past several weeks.


Leave a Reply