The markets shrugged off some bad news and bounced back Tuesday. The Dow Jones Industrial Average gained 127.83, or 1.63%, to 7,969.56, while the S&P 500 rose 17.69, or 2.13%, to 850.08. The Nasdaq jumped 35.64, or 2.22%, to 1,643.85.
Melissa Lee, the moderator of CNBC's "Fast Money" TV show, said investors shooked off some bad earnings and refused to roll over during the trading session. Lee said shares of Yahoo! ( YHOO) started to roll over in after-hours trading as soon as its CEO Carol Bartz talked about dark clouds in its outlook. Guy Adami said Yahoo! managed an earnings beat because it "tripped over a bar that was on the freaking ground." Jim Goldman, who listened in on the conference call, said Bartz said the company's top priority is to create "kick-ass" experiences for its users. Bartz also said the company is well-positioned for an increase in ad spending when the economy turns around, he said. Goldman said Yahoo! still has a long way to go to excite investors on a fundamental basis. He said the stock currently rises on talk of job cutbacks and prospects of a Microsoft ( MSFT) partnership. Lee shifted the discussion to the bank stocks, which rebounded after some bad news. Tim Seymour said the rebound came off of Treasury Secretary Tim Geithner's comments that most banks have enough capital. Adami liked the 20% move by US Bancorp ( USB) which beat expectations despite a 61% decline in first-quarter profit.