Materials stocks lead an early gain on Wall Street

Associated Press
FILE - In this Friday, Jan. 17, 204, file photo, Trader Peter Tuchman works on the floor of the New York Stock Exchange. (AP Photo/Richard Drew)

NEW YORK (AP) — Materials companies are leading an early gain on the stock market.

Dow Chemical jumped 6 percent after the hedge fund Third Point said it had taken a large stake in the company and will press for a spinoff of one of Dow's divisions. Other companies that make basic materials also rose.

Delta increased 3 percent after reporting a better-than-expected profit in the fourth quarter as fares and traffic rose. The airline's president said demand was strong.

The Dow Jones industrial average rose 30 points, or 0.2 percent, to 16,489 in the first few minutes of trading Tuesday.

The Standard & Poor's 500 index gained nine points, or 0.5 percent, to 1,848. The Nasdaq composite rose 29 points, or 0.7 percent, to 4,226.