ND: U.S. Stocks Open Higher After Tuesday's Tumble
By Corrie Driebusch And Dan Strumpf
U.S. stocks rose early Wednesday, as major benchmarks recovered ground one day after their biggest losses in weeks.
The Dow Jones Industrial Average gained 37 points, or 0.2%, to 18079, rebounding from a tumble of 1% on Tuesday, its biggest one-day rout since April 30.
The S&P 500 added five points, or 0.2%, to 2109, while the Nasdaq Composite Index gained 13 points, or 0.3%, to 5046. Both benchmarks sustained their sharpest loss since May 5 on Tuesday.
Information technology stocks, which sustained some of the biggest losses Tuesday, pulled ahead. Technology stocks in the S&P 500 rose 0.4%.
Tuesday's selloff marked a sharp divergence from recent stock-trading sessions. Last week both the Dow industrials and the S&P 500 hit fresh record highs despite anemic trading volume. On Tuesday volumes picked up but remained below average.
"Investors struggled a bit coming back from a three-day weekend," said John Brady, managing director at futures brokerage R.J. O'Brien. As trading for the month of May winds down this week, the focus will be on data, most important Friday's revised reading of first-quarter gross domestic product, he said.
The initial reading of first-quarter GDP showed the U.S. economy slowed dramatically, growing at a sluggish 0.2%. Economists surveyed by The Wall Street Journal expect that to be revised downward to a 1% contraction in Friday's revised reading.
Stocks were weighed down Tuesday by shares of small companies, which are typically more sensitive to the U.S. economy. They remained lower Wednesday, with the Russell 2000 small-cap index down 0.1%.
Investors will also continue to eye developments in Greece around its approaching debt payments this week, something that helped lead U.S. stocks lower on Tuesday, Mr. Brady said.
Earlier on Wednesday a weekly survey by the Mortgage Bankers Association showed that mortgage applications fell 1.6% for the week ended the previous Friday.
In Europe, Germany's DAX gained 0.2% and France's CAC 40 added 0.8%.
In commodity markets, gold futures slipped 0.1% to $1185.30 an ounce. Crude-oil futures fell 0.8% to $57.56 a barrel. The yield on the 10-year Treasury note was at 2.144%, compared with 2.135% on Tuesday. Yields fall as prices rise.
In corporate news, Michael Kors Holdings Ltd. shares tumbled 17% after the retailer warned that current-quarter results would fall short of expectations.
Tiffany & Co.'s shares jumped 10% after the jeweler reported earnings and revenue fell less than expected in its first quarter as a key sales metric grew across nearly every region, despite the impact of a strong U.S. dollar.
Write to Corrie Driebusch at corrie.driebusch@wsj.com and Dan Strumpf at daniel.strumpf@wsj.com
