U.S. stocks rose on Tuesday, with equities regaining some footing after the prior day's rout that shaved more than 300 points off the Dow Jones Industrial Average.
"Today is just a bounce. I don't think there is really that much behind it, other than some bargain hunters stepping in," said Robert Pavlik, chief market strategist at Banyan Partners.
Starting with the manufacturing report out a China a few weeks ago, and continuing with trouble in other emerging-market countries including Turkey and Argentina, "put it all together, and it's a good excuse to sell some stocks and get this correction going," said Pavlik, who believes the decline did not end with Monday's rout.
Equities maintained their gains after data had factory orders falling 1.5 percent in December after a 1.5 percent gain in November.
Economic reports on Wednesday were more likely to be market moving, with the ADP employment report coming ahead of Friday's nonfarm payrolls report for January. Another report on the services sector could shed light on a portion of the economy that is less sensitive to weather.
Microsoft shares climbed after it named Satya Nadella as its chief executive officer. Yum Brands rose after the fast-food retailer posted quarter profit that exceeded expectations. Michael Kors Holdings surged after the handbag and accessories retailer hiked its profit and sales outlook. J.C. Penney shares fell sharply, turning course on premarket gains, after the retailer reported a modest gain in quarterly comparable sales but offered no details on gross profit margin. JPMorgan and Sterne Agee reduced the target price of the stock.
"There is some discretionary spending going on, if there is a company that personifies discretionary spending," said Pavlik of the results posted by Michael Kors.