US mkts rebound, Dow gains over a percent, Nasdaq and S&P jump 2%

 US mkts rebound, Dow gains over a percent, Nasdaq and S&P jump 2%; Yahoo posts better than expected earnings; Indian ADRs rallied, HDFC Bk up 5.17%

US markets ended higher as investors were encouraged by comments from Treasury Secretary Tim Geithner that most banks are well capitalized. Techs jumped up ahead of Yahoo earnings, which were released after the bell.

In earnings, Yahoo’s quarterly profit met the Wall Street expectations. Shares rose more than 1.5% in after-hours trading. Yahoo generated revenue of $ 1.58 billion, down 13% from the year-ago period. It reported net profit in the first quarter of $ 118 million, down from $ 537 million, a year earlier.

Yahoo projected that sales in the current quarter will range between $ 1.425 billion and $ 1.625 billion. The company said it would cut 5% of its global workforce.

Bank stocks rebounded, after Geithner said most banks have enough capital to keep lending but a pile of bad loans is raising doubts about some banks’ health. Citigroup jumped 10% after CEO Vikram Pandit said the bank will pay back the TARP money it’s received.

At closing bell, the Dow Jones ended up 1.6%, the tech-heavy Nasdaq gained 2.2%, while the S&P 500 gained 2.1%.

Indian ADRs rallied on Tuesday. In Banking space, HDFC Bank was up 5.17% at $ 70.6 and ICICI Bank was up 2.21% at $ 16.62.

In IT space, Satyam Computers was up 6.56% at $ 1.95, Infosys was up 0.37% at $ 27.21, Wipro was up 1.87% at $ 8.16 and Patni Computers was up 3.13% at $ 6.92. In Telecom space, Tata Communication was up 1.21% at $ 22.63 and MTNL was up 1.04% at $ 2.92.

In other sectors, Tata Motors was up 1.17% at $ 6.94, Dr Reddy’s Labs was up 0.57% at $ 10.61 while Sterlite Industries was down 1.17% at $ 7.6.

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