U.S. stocks open higher, shaking off another drop in China

European markets were also broadly higher. Energy stocks were among the biggest decliners. The stock lost $19.63 to $162.76.

“Asian economies are slowing, in particular China, as evidenced once again over the weekend and it is how the authorities go about dealing with this that is spooking the markets”.

“The fact that we didn’t see kind of another washout today kind of emboldened some of investors to think that perhaps, at least on a short-term basis, maybe it was time for the market to bounce a little bit”, said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana. “Those two things are keeping investors on pins and needles right now”.

At 1447 GMT, the Dow Jones Industrial Average rose 1.13%, the Nasdaq increased 1.55% and the S&P 500 gained 1.16%. The S&P 500 rose 3.86 points, or 0.20 percent, to 1,927.53. Nasdaq Composite futures have advanced 0.5%.

All of the major stock indexes are down sharply for the year.

SECTOR VIEW: Six of the 10 sectors in the S&P 500 index moved lower, with energy stocks down the most, 1.6 percent. The aluminum producer fell 9 per cent, the most in more than four years after its sales last quarter dropped 18 per cent, and the company reported a net loss as falling aluminum prices dulled the impact of cost-cutting efforts.

US stocks had a wild ride during the Monday session.

Investors will also be turning attention to corporate earnings, after Alcoa unofficially kicked off earnings season yesterday. For the week, the Dow as off more than 1,000 points.

While China stepping up its defense of the yuan on Tuesday steadied markets somewhat, the deepening rout in raw materials is stoking concern over global inflation and the outlook for central bank policy.

We aren’t expecting a recession in 2016, so we are expecting that forward earnings will resume their climbs to new record highs this year.

Companies reporting earnings this week include JPMorgan Chase, Citigroup and Intel. The last time it was lower was December 2003. Baxalta fell 95 cents, or 2.4 percent, to $39.06.

OIL DRAG: Several energy and mining companies slumped as crude oil and other commodity prices fell. NRG Energy shed $1.07, or 9.4 percent, to $10.27. Energy companies erased a drop of as much as 2.3 per cent as crude trimmed its slide. That’s on top of a loss of 24 percent for 2015. The FTSE 100 index of leading British shares was up 1 percent.

The Standard & Poor’s 500 index slid seven points, or 0.4 percent, to 1,916. The stock added $4.41 to $68.68. Germany’s DAX slipped 0.2 percent, while the CAC-40 in France lost 0.5 percent.

CHINA’S WOBBLES: Chinese stocks rebounded Friday but analysts suggested that was due to buying from a group of state entities dubbed the “National Team” that is charged with shoring up share prices. In China, the Shanghai composite fell 5.3 percent.

Declining issues outnumbered advancing ones on the NYSE by 2,003 to 1,069, for a 1.87-to-1 ratio on the downside; on the Nasdaq, 1,743 issues fell and 1,081 advanced for a 1.61-to-1 ratio favoring decliners. Gold is down $6.70 to $1,104.60 per ounce and platinum is down $11.30 to $867.30 an ounce.

Bond prices fell. The yield on the 10-year Treasury note rose to 2.17 percent.

The dollar was up against all the main currencies, rising 1.08% against the pound, 0.14% against the euro and 0.04% against the yen. The stock dropped 78 cents to $7.23.