NEW YORK - U.S. stocks closed moderately higher Tuesday after better-than-forecast earnings from Dow component Johnson & Johnson and ahead of reports from blue-chip technology giants International Business Machines Corp. and Intel Corp.
The Dow Jones industrial average ended up 65.16 points, or 0.5 percent, to 12,266.75, with 20 of its 30 components notching gains. It was a partial recovery from the prior session, during which the average lost 140 points after Standard & Poor's lowered its outlook on long-term U.S. sovereign credit.
Johnson & Johnson shares led Dow gainers with a 3.7 percent rise, advancing after the health care company's results topped analysts' expectations with first-quarter sales and adjusted profit; J&J's management also raised its 2011 earnings forecast.
That outlook and anticipation of results from tech bellwethers due after the close of regular trading helped Wall Street recover some lost ground.
"This is an earnings-driven market at this point, and some of the commentary out of the companies isn't as bad as we expected, and forecasts going forward are reasonable," said Kim Caughey Forrest, senior equity analyst at Fort Pitt Capital.
"IBM and Intel for the tech sector will give us some clarity tonight," said Forrest of the results expected after the close. IBM is a "superbellwether," in that its businesses include hardware, software and related services, she added.
The Nasdaq composite index gained 9.59 points, or 0.4 percent, to 2,744.97.
The S&P 500 index rose 7.48 points, or 0.6 percent, to 1,312.62, with materials up the most. Telecommunications was the only sector among 10 to drop.
