* Stock futures jump 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 (Reuters) - U.S. stocks rebounded 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 after
Turkey's central bank sharply raised its interest rates, giving
further relief to investors. S&P 500 e-mini futures shot
up 20 points on volume of 1.7 million contracts.
Bucking the day'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 jumped 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.
"It's a reflex rally. It just technically looked deeply
oversold, so it was bound for a small short relief rally," said
Fred Dickson, chief market strategist at D.A. Davidson & Co. in
Lake Oswego, Oregon.
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.
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.
The data preceded the start of the Fed's two-day policy
meeting. Investors are 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
Recent soft economic data coupled with equity selling in the
United States and abroad may have some participants rethinking
what the Fed will do next.
"Perhaps there is a growing collection of wisdom (that) the
Fed may postpone its tapering," said Mark Luschini, chief
investment strategist at Janney Montgomery Scott in
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
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.
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.