NEW YORK (Reuters) - Stocks rose on Tuesday, rebounding after three days of declines, as investors bought beaten-down shares of social media and Internet companies.
The day's biggest gainers included Amazon.com Inc
The Global X social media index
Biotechnology stocks also reversed earlier losses, with the Nasdaq biotechnology index <.NBI> up 0.2 percent at 2,372.38. But Gilead Sciences Inc
The day's gains follow the S&P 500's biggest three-day retreat since late January and the Nasdaq's steepest three-day drop since November 2011.
"The put/call ratio for the SPDR S&P 500 ETF Trust
"This is a good quantification of near-extreme fear, and previous readings around these levels have marked short-term bottoms for the S&P 500."
The benchmark S&P index rebounded on Tuesday, above its 50-day moving average around 1,840, a support level which could trigger more declines if convincingly broken. The index has managed to stay above 1,840 several times over the past month.
The Dow Jones industrial average <.DJI> was up 47.10 points, or 0.29 percent, at 16,292.97. The Standard & Poor's 500 Index <.SPX> was up 7.86 points, or 0.43 percent, at 1,852.90. The Nasdaq Composite Index <.IXIC> was up 39.44 points, or 0.97 percent, at 4,119.20.
Earnings season gets under way this week, with results due from companies including Alcoa Inc
S&P 500 companies' first-quarter earnings are projected to have increased just 1 percent from a year ago, Thomson Reuters data showed. The forecast is down sharply from the start of the year, when profit growth was estimated at 6.5 percent.
A lackluster first-quarter earnings season hurt by a harsh winter could spark a pullback, some analysts said, with investors expressing optimism for the second quarter as the weather improves.
Takeda Pharmaceutical Co Ltd <4502.T> said it would contest $6 billion in punitive damages imposed by a U.S. federal jury in a case alleging Japan's largest drugmaker had concealed cancer risks associated with its Actos diabetes drug. Eli Lilly and Co