Trader George Ettinger, left, works on the floor of the New York Stock Exchange Monday, June 11, 2012. Stocks are opening higher on Wall Street, following markets higher across the globe after European countries said they would lend Spain as much as $125 billion to save its banks. (AP Photo/Richard Drew)
Trader George Ettinger, left, works on the floor of the New York Stock Exchange Monday, June 11, 2012. Stocks are opening higher on Wall Street, following markets higher across the globe after European countries said they would lend Spain as much as $125 billion to save its banks. (AP Photo/Richard Drew)
NEW YORK (AP) ? U.S. stocks moved higher Tuesday, recovering some of their big loss from a day earlier, after a Federal Reserve official said he supported more measures to stimulate the economy.
The Dow Jones industrial average climbed 100 points to 12,511.
Charles Evans, president of the Fed's Chicago bank, told Bloomberg News that he supported action to produce faster job growth. Last week, Fed Chairman Ben Bernanke said he was ready to act if the economy needs it but made no promises.
Energy stocks rose the most after the price of crude oil recovered from an eight-month low earlier in the day, but almost all industries in the U.S. market were higher.
On Monday, the Dow fell 142 points as enthusiasm over a rescue for Spanish banks evaporated in just hours.
On Tuesday, Spain's borrowing costs jumped for a second day, edging closer to levels that forced Greece, Ireland and Portugal to ask for emergency financing from their lenders.
Spain's European neighbors pledged over the weekend to lend the country up to $125 billion to distribute to its ailing banks. But investors are worried about whether Spain will have to repay that loan before it pays its other debt.
That makes bondholders less willing to buy Spain's debt and demand a higher interest rate to compensate for the added risk of losses.
"The market needs some confidence and foreign buyers won't buy Spanish debt if they won't get paid first," said William O'Donnell, head of U.S. treasury strategy at Royal Bank of Scotland.
The interest rate, or yield, on Spain's 10-year bond rose 0.20 percentage point to 6.67 percent, inching closer to the 7 percent level past which economists say countries can no longer finance their own debt.
Investors are also nervous ahead of an election in Greece this weekend which may determine whether that country cuts itself free from the euro currency.
Stocks slipped early in Madrid, then turned positive and were up 0.1 percent after U.S. markets opened. France's CAC-40 rose 0.1 percent, and Germany's DAX gained 0.3 percent.
In the U.S., the Standard & Poor's 500 index gained eight points to 1,317, and the Nasdaq composite rose 20 points to 2,830.
There was some good news on the high-end retail front. Michael Kors Holdings rose 82 cents, or 2 percent, to $39 after reporting that its fourth-quarter profit more than tripled on strong demand grew for its luxury clothing and accessories. The company also boosted its earnings forecast for the quarter and the year.
Luxury spending has recovered from the recession faster than other consumer spending. Stocks of other upscale retailers, like Nordstrom, also rose.
Other stocks making big moves:
? VeriFone Systems fell $2.65, or close to 8 percent, to $31.29 after the electronic payments company said a jury ruled against it in a patent dispute. VeriFone updated its February-April quarter results to reflect last week's verdict, saying late on Monday that it was booking $18 million in expenses.
? A123 Systems jumped 53 cents, or 50 percent, to $1.55 after the embattled electronic-car battery maker said it had developed new lithium ion technology capable of operating in extreme heat or cold. Heat generated by powerful, next-generation batteries is one of the biggest hurdles in developing cars that do not use fossil fuels.
? Textron rose 69 cents, or 3 percent, to $24.25, one of the biggest gains in the S&P 500, after business jet operator NetJets said it plans to spend up to $9.6 billion on new planes from Textron's Cessna unit and from Bombardier.
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