By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) — U.S. stocks began higher Tuesday as a drop in housing starts supported optimism that the Federal Reserve might stimulate the economy.
The Federal Open Market Committee starts a two-day session later in the morning.
“The big question is whether the Fed shows enough concern to provide additional stimulus or whether it assesses the current slowdown as a temporary situation that will self-correct,” Fred Dickson, chief market strategist at Davidson Companies, wrote in emailed comments.
The Dow Jones Industrial Average DJIA +0.79% added 71.14 points to 12,812.96.
The S&P 500 Index SPX +0.87% rose 9.39 points to 1,354.26, with materials the leading performer among its 10 industry groups.
The Nasdaq Composite COMP +1.04% added 24.54 points to 2,919.87.
For every stock falling, more than four gained on the New York Stock Exchange, where 83 million shares traded as of 9:55 a.m. Eastern.
Kate Gibson is a reporter for MarketWatch, based in New York.
