Wall Street up as Fed bets, company news offset economic woes

 U.S. stocks rose in a volatile Tuesday session as energy shares rallied, and on bets the Federal Reserve will be cautious in removing support in the face of a more fragile global economy.

Futures had crumbled in early trading as the ruble RUB= neared 80 per U.S. dollar. The Russian currency was recently down about 11 percent on the session, near 73 per dollar. Adding to global concerns, data showed factory 

activity shrinking in China and euro zone business growth remaining weak.

However, market participants cited bets on the Federal Reserve's next move in response to a more fragile global economic picture as giving stocks support. The Fed is expected to review whether it will maintain that it expects benchmark rates to remain near zero for a "considerable time."

"Perhaps markets think the Fed will not be as on-schedule on taking out that language," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

She said the market is betting the Fed will give consideration to rapidly changing financial conditions. A Fed statement and news conference are expected on Wednesday.

At 11:22 a.m. EST (1622 GMT) the Dow Jones industrial average .DJI rose 146.74 points, or 0.85 percent, to 17,327.58, the S&P 500 .SPX gained 16.1 points, or 0.81 percent, to 2,005.73 and the Nasdaq Composite .IXIC added 14.69 points, or 0.32 percent, to 4,619.85.

Brent crude LCOc1 lost more than 2 percent to $59.81 per barrel and U.S. crude CLc1 was almost flat.

Energy sector stocks .SPNY, up 2.9 percent, were the largest gainers on the S&P 500.

Prudential's Krosby said investors are looking for a bottom in big energy names to step back into the market.

CVS Health Corp (CVS.N), up 4.2 percent to $93.68, led gains on the S&P 500 after it provided guidance, while 3M (MMM.N) lifted its dividend and was the top gainer on the Dow industrials with a 1.7 percent advance.

Boeing (BA.N), up 2 percent at $124.55, was among the best performers on the day after it raised its dividend and perked up its buyback program.

Advancing issues outnumbered declining ones on the NYSE by 1,696 to 1,236, for a 1.37-to-1 ratio on the upside; on the Nasdaq, 1,498 issues rose and 1,048 fell for a 1.43-to-1 ratio favoring advancers.

The benchmark S&P 500 index was posting 6 new 52-week highs and 39 new lows; the Nasdaq Composite was recording 14 new highs and 143 new lows.

Reuters