US stocks rose modestly on Tuesday as a dividend hike at IBM and reassuring data that could signal a bottom in the economic cycle offset concerns that major banks may need to raise more money. International Business Machines Corp was a bright spot for the Dow, up 1.7 percent at $101.68 after its board approved a 10 percent increase in its dividend and authorised a stock buyback, underscoring strength amid a tough economic climate.
The Wall Street Journal reported that US regulators have told Bank of America Corp and Citigroup Inc they may need to raise more capital. The shortfall amounts to billions of dollars at BofA, the newspaper said, citing people familiar with the bank.
The paper added it is likely the US Federal Reserve will have determined other banks might also need more capital. The Dow Jones industrial average gained 8.36 points, or 0.10 percent, to 8,033.36. The Standard & Poor's 500 Index edged up 0.74 points, or 0.09 percent, to 858.25. The Nasdaq Composite Index rose 5.19 points, or 0.31 percent, to 1,684.60.