Stocks bounce back a day after big loss

NEW YORK - One day after logging its worst performance of the year, the stock market bounced back Tuesday with its best day of 2014. The Standard & Poor's 500 index climbed more than 1 percent and erased most of its loss from a day earlier.

Technology stocks led the gains as Wall Street analysts raised their assessments of Intel and the electronics company Jabil Circuit.

A report on retail sales also boosted investor confidence. Excluding spending on autos, gas and building supplies, sales increased 0.7 percent in December, the Commerce Department reported Tuesday. That was better than the increase of 0.4 percent forecast by economists.

The modest rise in December sales helped ease investors' concerns about the health of the economy after a surprisingly weak jobs report Friday.

The S&P 500 index gained 19.68 points, or 1.08 percent, to 1,838.88, its biggest gain since Dec. 18. The Dow Jones industrial average rose 115.92 points, or 0.71 percent, to close at 16,373.86, just below of its high of the day. The technology-heavy Nasdaq composite rose 69.71 points, or 1.69 percent, to 4,183.02.

Technology companies rose 1.9 percent, the most of the 10 sectors that make up the S&P 500. The nine other sectors also finished higher.

Intel climbed $1.01, or 4 percent, to $26.51 after analysts at JPMorgan raised their rating on the chip maker's stock.

Jabil Circuit jumped $1.30, or 7.8 percent, to $17.89 after Goldman Sachs recommended buying the stock of the electronics company.

Stocks have had a sluggish start to the year after an exceptional 2013. The S&P 500 index is down 0.5 percent in January after climbing nearly 30 percent last year.

Investors were also watching results from two big banks. JPMorgan Chase, the nation's biggest bank by assets, rose 4 cents, or 0.1 percent, to $57.74 after reporting gains in most of its divisions except for investment banking.

Wells Fargo rose 3 cents, or 0.1 percent, to $45.59 after the bank's net income rose 11 percent, despite a sharp drop in its mortgage business.

The yield on the 10-year note climbed to 2.87 percent from 2.83 percent on Monday as investors sold bonds. The yield was as low as 1.63 percent in early May of last year. Gold fell $5.70, or 0.5 percent, to $1,245.40 an ounce.

Time Warner Cable rose $3.60, or 2.7 percent, to $136 after Charter Communications intensified its pursuit of the company. Charter said Monday it would bring an offer directly to shareholders if needed.