Stocks Rally on Hopes for Stimulus

U.S. stocks shot higher Tuesday, recovering some of their big loss from a day earlier, after a Federal Reserve official said he supported more measures to stimulate the economy. Dow Jones industrial average gained 162.57 points, or 1.31 percent, to 12,573.80. The Standard & Poor’s 500 Index rose 15.25 points, or 1.17 percent, to 1,324.18. The Nasdaq Composite Index added 33.34 points, or 1.19 percent, to 2,843.07.

In an interview aired Tuesday on Bloomberg Television, Federal Reserve Bank of Chicago President Charles Evans said the central bank would back moves to spur more rapid jobs growth.

Prudential Financial Inc. (NYSE:PRU) said late Tuesday that its board authorized a new $1 billion stock repurchase program. The firm said it has already bought back about $1.25 billion under a $1.5 billion plan that was authorized last June.

Dell Inc. (NASDAQ:DELL) on Tuesday said the company will begin paying a dividend starting in its fiscal third quarter, which ends in October. The Round Rock, Texas-based company said it will pay a dividend of 32 cents a share per year. Based on the company stock’s closing price of $11.86 on Monday, the dividend yield would be 2.7%, Dell said.

Crude futures closed higher Tuesday, putting an end to a three-session decline. July futures for light, sweet crude added 62 cents, or 0.8%, to settle at $83.32 a barrel on the New York Mercantile Exchange.