NEW YORK -- U.S. stocks rallied Tuesday as shares of banks, retailers, and smaller companies jumped. That helped the market recover most of its losses from the previous two days.
The Standard & Poor's 500 index climbed 18.03 points, or 0.6 percent, to 2,839.96. The Dow Jones industrial average rose 112.22 points, or 0.4 percent, to 25,299.92. The Nasdaq composite added 51.19 points, or 0.7 percent, to 7,870.89. The Russell 2000 index advanced 17.26 points, or 1 percent, to 1,692.58.
The S&P 500 fell a combined 1.1 percent Friday and Monday as investors worried that Turkey's financial woes would affect other countries.
The Turkish lira steadied Tuesday as officials from Turkey and the U.S. said the countries are in talks to ease diplomatic tensions, which have resulted in high tariffs on Turkish steel and aluminum. Stocks in emerging markets like Argentina, Russia and Brazil jumped.
In the U.S., the biggest gains went to small and midsize companies, which do more business domestically compared with the large multinational firms. Shares of retailers rose, thanks in part to strong quarterly reports.
The reduced tensions with Turkey also stopped a rally in bond prices and sent yields and interest rates higher. That helped banks. Shares of industrial and basic materials companies also rose Tuesday, but compared with other parts of the market, they didn't recover as much of their losses.
Kristina Hooper, chief global market strategist at Invesco, said investors are shifting money into more U.S.-focused companies in response to the aggressive stance by President Donald Trump's administration in its dispute with Turkey, a longtime member of NATO.
"This is a reminder that the U.S. is a very different country than it was just a few years ago," she said.
Many retailers will report their quarterly results this week, a potential hint about how much money consumers are spending. Shares of Tapestry, the parent company of Coach and Kate Spade, jumped after its fourth-quarter results surpassed analysts' estimates. The stock surged 12 percent to $53.16.
Shares of auto parts retailer Advance Auto Parts jumped 7.8 percent to $156.13 after it did better than expected in the second quarter. Competitors AutoZone and O'Reilly Automotive climbed as well.
Smaller companies made outsize gains. Footwear maker Wolverine World Wide gained 2.4 percent to $38.39 and watchmaker Fossil rose 4.8 percent to $25.68.
Among midsize companies, Boston Beer picked up 3.9 percent to $291.30 and RV maker Thor Industries rose 2.6 percent to $97.06.
Bond prices moved lower. The yield on the 10-year Treasury note rose to 2.90 percent from 2.88 percent.
Shares of consumer credit company Synchrony Financial rose 2.8 percent to $30.01 after it said it extended a contract to manage credit card programs for home improvement retailer Lowe's. Lowe's gained 1.3 percent to $98.40.
Benchmark U.S. crude slipped 0.2 percent to $67.04 per barrel in New York. Brent crude, used to price international oils, dipped 0.2 percent to $72.46 per barrel in London.
Gold rose 0.2 percent to $1,200.70 an ounce. Silver rose 0.5 percent to $15.05 an ounce. Copper fell 1.8 percent to $2.68 a pound following weak economic reports from China.
Business on 08/15/2018