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US: Stocks rise on bargain-hunting, earnings hopes


[NEW YORK] Wall Street stocks bounced early Tuesday, recovering some of the losses of the prior session on bargain-hunting and optimism about quarterly earnings.

About 10 minutes into trading, the Dow Jones Industrial Average had rebounded 0.7 per cent to 23,810.58.

The broad-based S&P 500 gained 0.5 per cent to 2,595.61, while the tech-rich Nasdaq Composite Index advanced 0.8 per cent to 6,922.01.

Major US indices slumped about two percent Monday in a bruising open to the second quarter amid worries about escalating trade conflicts and a series of problems facing major technology companies, including Amazon and Facebook.

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But analysts said the retreat provided an incentive for investors to return to the market.

Investors also are gearing up for a strong first-quarter earnings reporting season, which kicks off later this month. Companies in the S&P 500 are projected to report a 17.3 per cent increase compared with the year-ago period, according to Factset.

Tesla Motors jumped 4.4 per cent after it reported that its current output of Model 3 vehicles was about 2,000 a week, below the 2,500 target, but well above the level in the prior quarter.

Most other leading technology companies were higher, with Amazon, Google-parent Alphabet and Intel all up about one per cent or more. But Facebook shed 0.3 per cent.