* Stock futures rally after Turkey's central bank raises
* Apple shares drop on muted iPhone sales, outlook
* Federal Reserve starts two-day policy meeting
* Dow up 0.6 pct; S&P 500 up 0.6 pct; Nasdaq up 0.4 pct
By Caroline Valetkevitch
NEW YORK, Jan 28 U.S. stocks bounced back on
Tuesday after Pfizer's upbeat results gave investors some relief
from the pain of the Dow's five-day losing streak, and the
market's focus turned to the Federal Reserve's next move on
The market's advance, which also broke the S&P 500's
three-day slide, came after heavy losses tied to concerns about
the withdrawal of U.S. monetary stimulus as well as worries
about emerging markets, including a slowdown in China's growth
and political turmoil from Turkey to Thailand.
Last week, the S&P 500 marked its worst percentage loss
since June 2012.
After the close, U.S. stock index futures rallied on the
news that Turkey's central bank had sharply raised its interest
rates. S&P 500 e-mini futures shot up 20 points on volume
of 1.7 million contracts.
"We had India's central bank increase rates, and now we see
Turkey, both bigger moves from what anyone was anticipating.
Emerging markets' central banks coming in and increasing rates
in succession should assuage people's fears of an emerging
market crisis," said Brian Jacobsen, chief portfolio strategist
at Wells Fargo Funds Management in Menomonee Falls, Wisconsin.
Wednesday will bring the conclusion of the Fed's two-day
policy meeting, with investors anxious to hear whether the Fed
will cut another $10 billion from its monthly bond-buying
program. In December, the central bank announced plans to scale
back its stimulus.
Bucking Tuesday's trend, the stock of Apple Inc
dropped 8 percent to close at $506.50 - its worst slide in a
year - a day after holiday iPhone sales missed expectations.
Apple's slide limited the gains of the S&P 500 and the Nasdaq.
Shares of Pfizer Inc shot up 2.6 percent to close at
$30.42, boosting both the Dow and S&P 500 after the biggest U.S.
drugmaker reported a better-than-expected quarterly profit.
"Tomorrow... People are going to be much more interested in
what direction the U.S. Fed takes us," said Bryant Evans,
portfolio manager at Cozad Asset Management, in Champaign,
The Dow Jones industrial average rose 90.68 points or
0.57 percent, to end at 15,928.56. The S&P 500 gained
10.94 points or 0.61 percent, to finish at 1,792.50. The Nasdaq
Composite added 14.35 points or 0.35 percent, to close
The S&P 500 remains below its 50-day moving average, after
closing below it on Friday for the first time since Oct. 9.
The day's move was mainly a "reflex rally," said Fred
Dickson, chief market strategist at D.A. Davidson & Co. in Lake
Oswego, Oregon. "It just technically looked deeply oversold."
A bright spot in the day's economic data was a report
showing U.S. consumer confidence rose in January. Consumers grew
more optimistic about both business conditions and the job
market, according to the Conference Board.
But orders for long-lasting U.S. manufactured goods
unexpectedly fell 4.3 percent in December, and a gauge of
planned business spending on capital goods also slid, which
could cast a shadow on an otherwise bright economic outlook.
Apple shares fell to their lowest since October. The tech
bellwether's iPhone sales in the holiday shopping season missed
lofty expectations and the company forecast weak revenue for the
current quarter in its quarterly results.
After the bell, shares of audio chipmaker Cirrus Logic Inc
, an Apple supplier, fell 4.6 percent to $17.87 as it
forecast fourth-quarter revenue far below Wall Street's
estimates. In the regular session, Cirrus shares declined 4.5
percent to end at $18.74.
During the regular session, activist investor Carl Icahn
said he bought another half-billion dollars' worth of Apple
stock, his third investment in the iPhone and iPad maker in less
than a week. The purchase increases his stake to more than $4
Shares of D.R. Horton surged 9.8 percent to $23
after the largest U.S. homebuilder reported a 4 percent rise in
In another snapshot of the economy, U.S. single-family home
prices in November rose slightly more than expected from the
previous month, while the increase from a year ago was the
biggest in almost eight years, a closely watched survey showed.
In other moves after the bell, shares of Yahoo fell
3.9 percent to $36.75 after the company's results showed revenue
declined for the fourth consecutive quarter.
Shares of AT&T declined 1.7 percent to $33.12 after
the company reported slower wireless subscriber growth in the
latest quarter than Wall Street had estimated.
Volume was slightly below average for the month. About 6.6
billion shares changed hands on U.S. exchanges, compared with
the average of 6.9 billion so far this month, according to data
from BATS Global Markets.
Advancers outnumbered decliners on the New York Stock
Exchange by about 3 to 1. On the Nasdaq, two stocks rose for
every one that fell.