NEW YORK - Stocks got a lift Tuesday as health-care companies bounced back after a heavy sell-off.
Biotechnology stocks in the Standard & Poor’s 500 index rose for the first time in five days after a sharp sell-off that was prompted by complaints from lawmakers over the cost of certain drugs. Merck and Boston Scientific were among the companies that rose.
The S&P 500 rose 8.18 points, or 0.4 percent, to 1,865.62. The Dow Jones industrial average gained 91.19 points, or 0.6 percent, to 16,367.88. The Nasdaq composite gained 7.88 points, or 0.2 percent, to 4,234.27.
The stock market has been flipping between gains and losses for most of the month, as investors have bought stocks after every dip. While many investors are confident that economic growth will accelerate as the weather moderates after an unusually harsh winter, they are reluctant to push stock prices higher before seeing more evidence that the economy is picking up.
“The reasons to buy are certainly there,” said Robert Pavlik, chief market strategist at Banyan Partners, a wealth management company. “People are afraid to jump the gun.”
Nine of the 10 industry groups in the S&P 500 ended the day higher. Industrial stocks rose the most, 0.9 percent, followed by the energy and health-care sectors, which each gained 0.8 percent.
Biotechnology companies in the index rose 0.6 percent, led by Alexion Pharmaceuticals, which rose $3.32, or 2.2 percent, to $153. The index had lost 8.5 percent over the previous four days. The index has surged in the past year and is still up 45 percent over the past 12 months.
Trading was choppy on Tuesday. Stocks started the day higher, dipped into the red at midday, then rose steadily throughout the afternoon.
McCormick was the best performing stock in the S&P 500 on Tuesday. The company, which makes spices, seasonings and condiments, rose $3.69, or 5.5 percent, to $71.20 after reporting earnings that beat analysts’ estimates. The company also reaffirmed its outlook for the year.
Another big gainer was Sonic. The stock of the drive in restaurant company jumped $2.31, or 11 percent, to $23.23 after the company posted earnings that exceeded the expectations of Wall Street analysts. Net income rose despite the unusually harsh winter weather.
There were also conflicting reports on the economy for investors to consider.
One report showed that fewer people bought new U.S. homes in February. Sales fell to the slowest pace in five months, a sign that the housing market has yet to recover fully from the winter, the Commerce Department said Tuesday. Meanwhile, an index measuring U.S. consumer confidence rose to the highest level in six years, another sign that the economy’s prospects should brighten with warmer weather.
Prices for U.S. government bonds fell. The yield on the 10-year U.S. Treasury note rose to 2.74 percent from 2.73 percent on Monday.
Crude oil fell 41 cents, or 0.4 percent, to $99.19 a barrel. Gold edged up 20 cents to $1,311.40 an ounce.
Business, Pages 26 on 03/26/2014