Wall Street makes quick recovery

Strong data, earnings reports help US stocks erase most of Monday's losses.

United States stocks are solidly higher in late afternoon trade after having their worst day since September on Monday, with support coming in part from better-than-expected earnings at JPMorgan Chase and Wells Fargo.

Stocks were also boosted by news retail sales in the US had climbed 0.2 per cent in December, which was slightly above forecasts for a 0.1% lift.

At 0720 AEDT, the Dow Jones Industrial Average had climbed 102.59 points, or 0.63%, at 16,360.53.

The broad-market S&P 500 rose 19.13 points, or 1.05%, to 1,838.32, while the tech-heavy Nasdaq gained 67.97 points, or 1.65%, at 4,181.27.

Stocks have extended gains throughout the trading day after a modestly higher open.

On Monday, the indices suffered losses of more than one per cent as investors continued to digest the weak jobs report for December released on Friday.

"Yesterday's market dip ahead of the onslaught of fourth-quarter earnings releases over the next month is not surprising," said Fred Dickson of DA Davidson & Co.

"Investors appear to view numbers that will hit the tape over the next month cautiously, especially coming after last Friday's disappointing employment report."

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