By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks were modestly lower on
Tuesday as investors remained cautious following strong gains from
the past five weeks.
Earnings beats and misses, as well as Apple Inc.'s hotly
anticipated product event provided a backdrop to Tuesday's tepid
session.
The S&P 500 (SPX) was 6 points, or 0.3%, at 1,995.24. The
Dow Jones Industrial Average (DJI) dropped 60 points, or 0.4%, to
17,050.50 at the open. The Nasdaq Composite (RIXF) lost 11 points,
or 0.3%, to 4,580.52.
"The S&P 500 continues to consolidate around the technical
resistance level of 2,000 and it could do so for a while," said
Randy Frederick, managing director of trading & derivatives at
Schwab Center for Financial Research.
"We are also at a juncture where stocks are fairly priced, not
too expensive, but not too cheap either. In the absence of earnings
news or major economic data, it is not unusual to see sideways
moves," he added.
Among economic news, small-business sentiment in August nudged
up to its second-highest reading since October 2007, a trade group
said Tuesday. July job openings ticked down to 4.67 million from to
4.68 million in June. Also read: Michael Sincere on why this stock
market will never go down
Stocks to watch: The iPhone maker (AAPL) held its product event
near its headquarters in Cupertino, Calif. The company unveiled the
newest version of its flagship phone and is expected to unveil a
new iWatch wearable device. Shares rose above $100 after gaining
1.8%. Also read: Tim Mullaney on why Apple exemplifies everything
that's wrong about Silicon Valley.
McDonald's (MCD) shares fell 1.4% after the fast-food restaurant
chain said global comparable sales fell 3.7% in August and blamed
"several headwinds" for the decline. The company warned that
problems with a supplier in China will hurt third-quarter results.
Also read: The secret to a long life? Fast food
Shares of Annie's Inc.(BNNY) rose 38%, on the heels of a similar
late-session rally after General Mills Inc. (GIS) offered to buy
the organic-foods company for $820 million in cash.
Shares of Pinnacle Foods Inc.(PF) fell 4.2% after the
packaged-foods company said some shareholders tied primarily to
investment firm Blackstone will sell 15 million common shares.
Barnes & Noble Inc. (BKS) shares were up 4.1% after the
bookseller's fiscal second-quarter profit jumped thanks to cost
cuts, masking a bigger-than-expected decline in revenue.. Read
about more of the day's notable stock moves here.
Other markets:The yield on the 10-year Treasurys(10_YEAR) rose 3
basis points to 2.5%, its highest since the beginning of August on
a closing basis. Brent crude oil prices held steady at $100 a
barrel, while the dollar charted new highs against the yen (USDJPY)
and the euro (EURUSD). Europe stocks posted mild losses, while Asia
markets saw mostly modest gains.
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