By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose Tuesday after China's
central bank injected liquidity into the financial system, though
gains in blue-chips evaporated on earnings disappointments.
The S&P 500(SPX) rose 3.5 points, or 0.2%, to 1,841.87, at
its highs surpassing a recent record close. The Dow Jones
Industrial Average (DJI) rose at the open and then turned lower. It
was last down 44 points at 16,415. The Nasdaq Composite(RIXF) was
up 14 points at 4,212.
U.S. markets were closed on Monday in observance of Martin
Luther King Jr. Day.
Investors focused on earnings releases in a week light on
economic news ahead of the Federal Reserve meeting scheduled for
next week.
Dragging on the Dow, Verizon Communication Inc. (VZ) shares fell
1.8%. The firm said it swung to a profit amid a growth in
subscribers, particularly in its wireless and FiOS divisions. The
firm said it had adjusted earnings of 66 cents, beating Wall Street
estimates of 65 cents, according to Thomson Reuters poll.
Shares in Johnson & Johnson(JNJ) fell 1.6%, also hitting the
Dow, after the company reported fourth-quarter results. While the
quarterly earnings per share were above analysts expectations,
full-year outlook disappointed investors.
Delta Air Lines Inc. (DAL) shares climbed 3.1% on Tuesday after
the firm's fourth-quarter earnings beat Wall Street
expectations.
Forest Laboratories Inc. (FRX) gained 2.6% after the
pharmaceuticals firm reported that it swung to a profit in the
third-quarter and upgraded its outlook for the current quarter.
The S&P 500's cyclical sectors -- energy and natural
resources -- led gains for the index after the People's Bank of
China said it provided emergency funding support for commercial
banks as they gear up to meet demands for cash ahead of the Lunar
New Year. The news lifted Hong Kong stocks as well as European
stocks.
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