* Bounce follows Monday sell-off
* Dell to go private in $24.4 bln deal, shares up
* Archer Daniels, Estee Lauder both up after results
* Indexes: Dow up 0.7 pct, S&P up 1 pct, Nasdaq up 1.3 pct
By Caroline Valetkevitch
NEW YORK, Feb 5 U.S. stocks climbed on Tuesday,
recovering a day after the market's biggest sell-off since
November, as stronger-than-expected earnings brightened the
Dell Inc's stock rose after the world's No. 3
computer maker agreed to be taken private in a $24.4 billion
deal, the largest leveraged buyout since the 2008-2009 financial
crisis. The stock gained 1.1 percent to $13.42.
All 10 S&P sectors were higher, and the S&P 500 and Nasdaq
gained more than 1 percent.
The market's bounce follows a sell-off on Monday that gave
the S&P 500 its biggest percentage decline since mid-November.
The benchmark remains up 6 percent since the start of the year
and is less than 4 percent away from its all-time closing high
of 1,565.15 from October 2007.
Analysts said fourth-quarter results have been among factors
helping to boost stocks. On Tuesday, Archer Daniels Midland
reported revenue and adjusted fourth-quarter earnings
that beat expectations, boosted by strong global demand for
oilseeds. Shares rose 3.3 percent to $29.38.
"There's not a huge upside surprise by any means, but we're
definitely seeing slightly better-than-expected earnings
overall," said Bryant Evans, portfolio manager at Cozad Asset
Management, in Champaign, Illinois.
The Dow Jones industrial average was up 99.22 points,
or 0.71 percent, at 13,979.30. The Standard & Poor's 500 Index
was up 15.58 points, or 1.04 percent, at 1,511.29. The
Nasdaq Composite Index was up 40.41 points, or 1.29
percent, at 3,171.58.
The market shot higher at the start of the year after U.S.
lawmakers were able to come to a last-minute agreement to avoid
a national "fiscal cliff," but questions on spending cuts
President Barack Obama on Tuesday urged Congress to pass a
small package of spending cuts and tax reforms. Though the plan
was quickly rebuffed by Republican leaders, investors are
looking for an agreement.
"I think there's some hopefulness out there that a
reasonable compromise will be made," Evans said.
Also in earnings, Estée Lauder Cos Inc reported a
higher quarterly profit and raised its full-year profit
forecast. The stock rose 6 percent to $64.71.
With results in from more than half of the S&P 500
companies, 69 percent have beaten profit expectations, compared
with the 62 percent average since 1994 and the 65 percent
average over the past four quarters. Sixty-six percent of
companies have beaten on revenue.
Fourth-quarter earnings for S&P 500 companies are expected
to rise 4.5 percent, according to the data, above the 1.9
percent forecast at the start of earnings season.
On the down side, McGraw-Hill shares slumped 10.7
percent to $44.92 after the U.S. Justice Department filed a
civil lawsuit seeking $5 billion over mortgage bond ratings.
Standard & Poor's, a McGraw Hill unit, was accused of inflating
ratings and understating risk out of a desire to gain more
business from investment banks.
On Monday, McGraw-Hill stock suffered its worst one-day
decline since the 1987 market crash.
Volume was roughly 6.7 billion shares traded on the New York
Stock Exchange, the Nasdaq and the NYSE MKT, compared with the
2012 average daily closing volume of about 6.45 billion.
Advancers outpaced decliners on the NYSE by nearly 11 to 4
and on the Nasdaq by about 3 to 1.