NEW YORK - Global stocks steadied and U.S. markets marched higher Tuesday, as investors were encouraged by strong results from UPS, Ford and other big companies.
The recovery comes after five straight days of losses for U.S. indexes, but investors say the market still lacks the foundation for an extended rally.
"We just don't see any significant catalyst that will move this market higher, even after last week's declines," said Kristina Hooper, market strategist with Allianz Global Investors.
The Dow Jones industrial average rose 189.68 points, or 1.1 percent, to 17,630.27, ending near its high for the day. The Standard & Poor's 500 index rose 25.61 points, or 1.2 percent, to 2,093.25 and the Nasdaq composite rose 49.43 points, or 1 percent, to 5,089.21.
A dose of corporate earnings gains helped drive the advance Tuesday.
UPS rose $4.82, or 5.1 percent, to $99.94. The company saw profits jump from a year ago, helped by stronger business overseas. UPS is sometimes seen a proxy for the global economy because of its huge role in delivering goods all over the world on a daily basis. Ford rose 28 cents, or 1.9 percent, to $14.83.
Global markets were a little less stressed Tuesday. The Shanghai Composite Index closed down 1.7 percent, but had been trading down as much as 4 percent earlier in the day. Chinese stocks plunged 8.5 percent on Monday, the biggest drop since February 2007, despite concerted efforts by the Chinese government to stem the slide. European stocks rose roughly 1 percent.
Traders turned their attention to the Federal Reserve as they try to assess when interest rates will rise. Fed policymakers started a two-day meeting Tuesday.