By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market ended Tuesday
sharply higher, with the S&P 500 closing at a record. Investors
bid up prices after mildly positive manufacturing data and
better-than-expected car sales boosted confidence.
The S&P 500 (SPX) ended the day at session highs, gaining
13.18 points, or 0.7%, to 1,885.52, a record. Consumer
discretionary and technology sector stocks led the gains on the
benchmark index.
The Nasdaq Composite (RIXF) finished the day up 69.05 points, or
1.6%, at 4,268.04. After today's gains, the tech-heavy index
overtook the benchmark for year-to-date gains.
The Dow Jones Industrial Average (DJI)closed up 74.95 points, or
0.5%, at 16,532.61.
Read the recap of MarketWatch's live blog of today's
stock-market action.
"The ISM data were within the range of expectations, car sales
were pretty good, so it is not surprising to see markets go higher.
But there is another factor -- we are in the earnings sweet spot
right now, and as companies start reporting in the next couple of
weeks, they will start beating lowered expectations," said John
Canally, economist and investment strategist at LPL Financial.
"About 94% of all the gains on the S&P 500 come during the
period of 2 weeks before the earnings season and 4 weeks of actual
earnings season," he added.
U.S. manufacturing companies expanded in March at a slightly
faster pace compared to the prior month, a survey of executives
found. The Institute for Supply Management manufacturing index
edged up to 53.7%, slightly below the consensus forecasts. Any
number over 50% means more companies are seeing an expansion of
business instead of a contraction.
Separately, the final Markit PMI for the U.S. in March was
unchanged at 55.5, down from 57.1 in February. Any reading over 50
in the purchasing managers index indicates growth.
Car sales top expectations; Ford rises 4.6%
U.S. car sales surged to an annualized rate of 16.4 million in
March -- the highest rate since November and above analysts'
forecast of 15.8 million.
Chrysler Group, a unit of Fiat SpA, was the first to report,
saying its March sales jumped 13% to 193,915 vehicles for its best
March since 2007.
Ford Motor Company's (F) U.S. vehicle sales rose 3.3% last
month, the best March in eight years. Sales turned higher
mid-month, the car maker said Tuesday. Sales figures topped
analysts' forecasts. Shares in Ford rose 3%.
General Motors Co. (GM.XX) March numbers, delayed by a computer
system glitch, came in late, but strong, up 4% from a year ago
despite a raft of recent recalls. Analysts had expected an increase
of 1% or less.
Meanwhile, GM CEO Mary Barra was making news in Washington,
where she's being grilled by a House subcommittee on why the
company hadn't recalled cars it knew a decade ago to have a
potentially fatal flaw with their ignition systems. See
MarketWatch's live blog from the hearing.
Among individual stocks, shares of Intuitive Surgical Inc.(ISRG)
jumped 11%. The company said Tuesday it received clearance for its
da Vinci Xi Surgical System from the U.S. Food and Drug
Administration.
NVIDIA Corp. (NVDA) shares rose 4.1% after the company was
upgraded to a market outperform rating from market perform with a
price target of $26 on Tuesday by JMP Securities.
Hewlett-Packard Co. (HPQ) shares rose 2.7% even as the company
reportedly agreed to pay $57 million to settle a lawsuit related to
plans back in 2011 to refocus the business on services and
products.
Apollo Education Group Inc. (APOL) shares closed 2.7% higher,
but dropped more than 4% in aftermarket after the for-profit
education group's quarterly results. The company's adjusted
earnings per share were better than expected, but revenues fell
short of estimates, while existing and new enrollment continued to
slide.
In other financial markets, Asian markets closed mixed, European
stocks closed broadly higher after purchasing-manager reports
confirmed the euro zone remains on a path to economic recovery.
Metals prices (GCM4) were mixed, with gold prices falling and
copper gaining. Crude oil (CLK4) settled lower. The dollar
strengthened against the pound sterling and weakened against the
euro.
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