NEW YORK — Investors spent Tuesday preparing for two events sure to move markets this week: a Federal Reserve meeting and a court decision on whether Germany can help support its struggling neighbors. And if the stock market’s gains Tuesday are any sign, they expect both events to turn out well.
The Dow Jones industrial average rose 69.07 points to close at 13,323.36. The average of 30 large company stocks has already gained 1.8 percent to start September, a month which is usually dismal for stocks.
Bank of America led the 30 stocks in the Dow, rising 5 percent, or 45 cents, to $9.03.
On the same day the Fed starts its meeting, Germany’s high court is expected to rule on whether the country can participate in a European bailout fund. The court rejected a last-minute appeal to delay the decision on Tuesday.
“Prior to the employment report people weren’t as sure,” Frederick said. “I am definitely on the majority side here. There’s some sort of easing coming.”
In other trading, the Standard & Poor’s 500 index rose 4.48 points to 1,433.56. The Nasdaq composite increased 0.51 of a point to 3,104.53.
“These are the things that make you nervous, when markets are going strong in anticipation of news,” Florance said.
On Tuesday, the Commerce Department reported that exports to Europe dropped 11.7 percent in July, stoking concerns that Europe’s troubles could smother the U.S. recovery. Overall U.S. exports fell 1 percent to $183.3 billion, lowered by weaker sales of autos, telecom equipment and heavy machinery.
Morgan Stanley and Citigroup rose after the two banks settled a dispute over how much to value their jointly owned brokerage firm, Morgan Stanley Smith Barney. The deal cleared the way for Morgan Stanley to buy Citigroup’s stake. Citi gained 83 cents to $32.66. Morgan Stanley rose 64 cents to $17.25.
A profit warning from luxury clothing chain Burberry helped tug down other high-end retailers in early trading. Burberry said slowing sales to China will likely weaken earnings. Ralph Lauren lost $4.09 to $156.22. Tiffany & Co. sank 78 cents to $62.26.
Among other stocks making moves:
• Legg Mason jumped 5 percent following reports that its CEO will step down Oct. 1. Clients have been pulling money out of the money manager’s funds, weakening revenue. Legg Mason’s stock surged $1.38 to $26.85.
• Hewlett-Packard gained 52 cents to $17.95, a 3 percent gain. The computer and printer maker said late Monday that it will cut 29,000 jobs by October 2014, or 2,000 more than it had previously planned. Sales of personal computers have slumped as people favor smartphones and lightweight tablet computers.
• AP business writer Christina Rexrode contributed to this story.
'Your papers, please' must never be heard in America
Independent voices from the TWT Communities
We hear about the politics, now lets visit with the people of the square
Life advice – from one friend to another!
Reviews, insights and commentary from an eclectic observer.
Right-brain investing in a left-brain world. You can do it. I can help.
Benghazi: The anatomy of a scandal
Vietnam Memorial adds four names
Cinco de Mayo on the Mall