* Indexes up: Dow 0.4 pct, S&P 0.6 pct, Nasdaq 0.7 pct
By Rodrigo Campos
NEW YORK (Frankfurt: HX6.F - news) , Feb 4 (Reuters) - U.S. stocks bounced on Tuesday,underpinned by sturdy corporate results, as the market fought toregain its footing following its largest selloff in months a dayearlier.
Monday's sharp decline, on the back of weaker-than-expectedU.S. data, concerns over growth in China and the outlook forsome emerging economies, opened the door for traders looking forbargains. Consumer and financial stocks were leading the gainson the S&P 500.
Macroeconomic events have been a focus for investors in thewake of a rout in emerging market currencies, which triggeredaction by some central banks. That pressured bond and stockholdings and forced investors to favor assets perceived asrelatively safe, like the yen and U.S. and German governmentdebt.
The price of protection against further drops on the S&P 500dropped 10 percent after hitting Monday its highest level in 13months. However, the CBOE Volatility Index was stillabove 19, a level not seen since October before Monday's jump.
"Yesterday was really the first concerted selloff,indiscriminate as to individual stocks," said Rick Meckler,president of investment firm LibertyView Capital Management inJersey City, New Jersey.
"With that type of selling going on, this morning you'reseeing some bargain hunters looking for oversold opportunities."
He said sectors that saw heavy selling despite stable profitpictures included financials and retailers, among the leaders inTuesday's bounce-back.
Data on Tuesday showed new orders for U.S. factory goodsfell in December, but rose for a third straight month when thevolatile transportation sector was excluded.
The Dow Jones industrial average rose 64.75 points or0.42 percent, to 15,437.55, the S&P 500 gained 10.42points or 0.6 percent, to 1,752.31 and the Nasdaq Composite added 26.566 points or 0.66 percent, to 4,023.524.
Of the 277 companies in the S&P 500 that have reportedearnings so far this season, 69.3 percent have beaten analysts'profit expectations, while 65.2 percent have exceeded revenueexpectations, according to the latest data from Thomson Reuters (Frankfurt: TOC.F - news) .
Michael Kors Holdings Ltd reported a 77 percentjump in third-quarter profit as shoppers snapped up its handbagsand accessories, sending its shares up 18.7 percent to $90.99.
Bank shares were underpinned by U.S-traded shares of UBS and Itaú Unibanco, which rallied. Itaú,Brazil's largest private-sector lender, reported recordfourth-quarter profit that beat analysts' estimates. UBS (Xetra: UB0BL6 - news) swung to a larger-than-expectedfourth-quarter profit and announced higher dividends andbonuses.
Itaú ADRs rose 8.1 percent to $13.01 and UBS added 6 percentto $20.37.
Shares of Yum Brands Inc rose 9.1 percent to $72.19after the KFC parent reaffirmed its 2014 profit outlook and saida resurgent bird flu in China had not hurt national sales in itstop market.
Furiex Pharmaceuticals (NasdaqGS: FURX - news) shares more than doubled.The drugmaker said an experimental drug met the main goal of apair of large clinical trials by significantly alleviatingdiarrhea and abdominal pain associated with irritable bowelsyndrome. Shares were up 129.4 percent at $105.47.
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