U.S. stocks posted a sharp recovery in the second half of the session to erase earlier losses. At the closing bell, the Dow Jones Industrial Average gained 0.5%, the S&P 500 added 0.6% and the Nasdaq Composite moved 0.1% higher. The volatility can be seen in the Dow's 328-point range on Tuesday. Similarly, the S&P 500 traded within a 39-point range and 99 points for the Nasdaq.
Utility and consumer-staples names led the way higher on Tuesday, while materials stocks lagged. Elsewhere, the yield on the benchmark 10-year U.S. Treasury note fell 2.7 basis points to 2.258%.
Depomed (DEPO) was the big winner of the session, gaining more than 38% after receiving a $1.8 billion hostile takeover bid from Horizon Pharma (HZNP). Horizon shares fell 2% on Tuesday. Advanced Micro Devices (AMD) fell 15% after management cut its sales outlook. In after-hours action, Container Store (TCS) shares are up more than 5% after the company announced quarterly results.
Looking ahead to Wednesday morning on the economic front, we get a look at weekly mortgage applications before the opening bell.