Stocks Bounce Back, Lifted by Earnings, Data

Stocks closed with substantial gains on Tuesday, bouncing back after their worst decline since early  November, following solid earnings from Coca-Cola and Johnson & Johnson and inflation data that  reinforced expectations that the Federal Reserve will keep its stimulus in place. The Dow Jones  Industrial Average rose 157.58 points, or 1.08%, to 14,756.78. The S&P 500 index added 22.21 points, or  1.43%, to 1,574.57. The Nasdaq Composite rose 48.14 points, or 1.50%, to 3,264.63.

Yahoo Inc. (NASDAQ:YHOO) on Tuesday reported a first quarter profit of $390.9 million, or 35 cents a  share, compared with a profit of $286.34 million, or 23 cents a share, in the year-earlier period.  Revenue excluding traffic acquisition costs was $1.07 billion, compared to $1.08 billion in the same  period the previous year. Adjusted profit was 38 cents a share.

Intel Corp. reported a 26% drop in earnings for the first quarter on Tuesday afternoon — coming in line  with Wall Street’s forecast for the period. For the quarter ended March 30, Intel (NASDAQ:INTC) reported  net income of $2 billion, or 40 cents per share, compared to net income of $2.7 billion, or 53 cents per  share, for the same period last year. Revenues fell by 2% to $12.6 billion.

Consumer prices fell in March for the first time in four months and factory output slipped,  strengthening the argument for the Federal Reserve to maintain its monetary stimulus to speed up  economic growth.

Retailer Target Corp (TGT.N) on Tuesday warned first-quarter earnings would miss expectations, after  weaker-than-expected sales of seasonal and weather-sensitive items. Target said adjusted earnings per  share would come in slightly below the low end of its prior outlook of $1.10 to $1.20, and same-store  sales would be about flat.

Oil fell as low as $86.06 a barrel on Tuesday before recovering to $88.33 a barrel, down 38 cents, in  afternoon trading on the New York Mercantile Exchange.