By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks trimmed gains but remained
mostly higher Tuesday, with the S&P 500 on track to break a
two-day losing streak, after a stronger-than-expected rise in
consumer confidence.
The S&P 500 (SPX) trimmed earlier gains but remained up 4.67
points, 0.8%, at 1,862.11. The Dow Jones Industrial Average (DJI)
saw a triple-digit jump in earlier action and remained up 75.4
points, or 0.5%, to 16,352.09.
The Nasdaq Composite (RIXF), however, was unable to hang on to
an early rise, slipping 1.85 points, or less than 0.1%, to
4,224.53
"Today's economic data were as expected and market reaction has
been muted," said Brad Sorensen, director of market and sector
research at Schwab Center for Financial Research.
"Markets are waiting for a catalyst to take them higher or
lower, as things are once again quiet overseas, earnings season has
not started yet and valuations are not too low or high," he
added.
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U.S. home prices slipped in January for a third straight month
after a particularly harsh winter, according to data released
Tuesday, as strong year-over-year appreciation showed signs of
moderating.
New U.S. homes sold at an annual rate of 440,000 in February,
down 3.3% from January's one-year high, the government said
Tuesday. Economists polled by MarketWatch forecast sales to total a
seasonally adjusted 440,000.
A gauge of U.S. consumer confidence rose to 82.3 in March from
an upwardly revised 78.3 in February, the Conference Board said
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 4% 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.
(CCL)In corporate news, shares in Walt Disney Co. (DIS) slipped
0.3%. Shares had gained ground in earlier action 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.
Volatile fuel-cell company stocks rose Tuesday, reversing losses
from the previous session. Plug Power Inc. (PLUGD) rose 8% while
FuelCell Energy Inc. (FCEL) trimmed its earlier rally but remained
up 0.9%.
Himax Technologies Inc. (HIMX) sank 14% 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 2.4% 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
stores later this year.
Shares of Sonic Corp. (SONC) rallied more than 10% after the
company posted a 15% profit gain.
Shares of Carnival Corp (CCL) dropped more than 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) were little changed. 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 80.073, from 79.923
late Monday.
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