By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks marched higher on Tuesday,
with investors focusing on a deluge of economic data, including
housing and consumer confidence reports, and earnings reports from
Walgreen and Sonic.
The S&P 500 (SPX) added 10.8 points, or 0.6%, to
1,868.39.
The Dow Jones Industrial Average (DJI) rose 114.74 points, or
0.7%, to 16,394.85
The Nasdaq Composite (RIXF) was 17 points, or 0.6%, higher at
4,253.11.
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Ahead of the opening bell, data on U.S. home prices showed a
third consecutive decline due to harsh winter, while longer-term
trends showed that price growth is slowing down, according to
S&P/Case-Shiller's 20-city composite index released
Tuesday.
Markets were reassured by comments from Philadelphia Fed
president Charles Plosser, who said in an interview with CNBC that
short-term interest rates should hit 3% at the end of 2016. He also
said the market reaction to Federal Reserve Chairwoman Janet
Yellen's comments after last week's Federal Open Market Committee
meeting was "puzzling." He said her timetable of a rate hike six
months after the end of bond buying "wasn't a wildly unexpected
time frame." Her comments sparked a selloff for stock markets last
Wednesday.
Plosser, who is a voting member of the Fed's policy committee,
said the rate forecast isn't aggressive. The Philadelphia Fed chief
is due to speak again at 7 p.m. Eastern. Atlanta Federal Reserve
President Dennis Lockhart will speak as the market closes at 4 p.m.
Eastern time.
More data on house sales could confirm what has been seen so far
-- a not-so-upbeat start to the year. New-home sales data, due at
10 a.m. Eastern time, are expected to show year-over-year growth to
slow to an annualized 440,000 pace in February, from 468,000 in
January.
Also at 10 a.m. Eastern time, consumer-confidence data for March
will be released.
(CCL)In corporate news, shares in Walt Disney Co. (DIS) were up
0.6% after the media giant said late Monday it was buying Maker
Studios for as much as $950 million. The privately held studio is
credited with making the Harlem Shake video go viral.
Vertex Energy Inc. (VTNR) shares were up 5% after the
environmental services company said late Monday that net income
rose to $7.88 million last year, a 115% jump from the prior
year.
Volatile fuel-cell company stocks rose Tuesday, reversing losses
from the prior session. Plug Power Inc. (PLUGD) rose 4.2% while
FuelCell Energy Inc. (FCEL) was up 1.7%.
Himax Technologies Inc. (HIMX) sank 11% after Bank of America
Merrill Lynch downgraded the semiconductor maker to underperform,
saying the highly competitive market will make margin expansion
difficult for Himax, according to news reports.
Walgreen Co. (WAG) rallied 4.5% after the company reported its
fiscal second-quarter earnings, which fell slightly from the
year-earlier period. The drugstore chain said it would close 76
stories later this year.
Shares of Sonic Corp. (SONC) rallied 10% after the company
posted a 15% profit gain.
Shares of Carnival Corp (CCL) dropped 2.5% after the cruise
company reported that it swung to a fiscal first-quarter loss. Its
outlook for the next quarter came in below Wall Street's
expectations.
In other markets, stocks in Asia showed a modest pullback, as
investors continued to mull downbeat China manufacturing data from
the weekend and a slightly disappointing Markit preliminary U.S.
purchasing managers index. European stocks pushed higher, shrugging
off soft German business-confidence data.
Gold prices (GCM4) gave up earlier gains and were lower. Oil
(CLM4) prices ticked up. The ICE dollar index (DXY) , which
measures the U.S. unit against a basket of six major rivals, rose
to 80.05, from 79.923 late Monday.
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