By Anora Mahmudova and Carla Mozee, MarketWatch
Kate Spade, Intercept shares jump
NEW YORK (MarketWatch) -- U.S. stocks moved between small gains
and losses Tuesday as investors remained jittery amid tension
between Ukraine and Russia and lingering concerns about sectarian
wars in the Middle East.
Fears over geopolitical tensions and a potential U.S. rate hike
pushed investors to scale back risk and increased cash levels to
two-year high this month, according to a B. of A. Merrill Lynch
fund-manager survey.
The S&P 500 (SPX) was flat at 1,936.60. The Dow Jones
Industrial Average (DJI) was flat at 16,571.21. The Nasdaq
Composite (RIXF) was 2 points lower at 4,398.85.
Geopolitical news took a center stage on Tuesday, undermining
the optimism among global investors. Haven assets, such as U.S.
Treasurys and gold were higher, while equities suffered.
Tensions between Ukraine and Russia escalated after Russian sent
a convoy carrying aid for eastern Ukraine on Tuesday. Kiev has said
it would not allow the vehicles to cross onto its territory,
claiming the convoy was carrying military gear in the guise of aid.
It's not clear whether the convoy has reached the border.
Meanwhile, clashes between ISIS and Kurdish forces continued in
Iraq.
In economic news, the number of job openings in June rose to
4.67 in June, the most since early 2001, Bureau of Labor Statistics
said. Federal Reserve Chairwoman Janet Yellen often cites the
survey when she assesses the state of the labor market. Tuesday's
report did not affect the stock market.
The National Federation of Independent Business's gauge of small
businesses, released early Tuesday, showed sentiment edged higher
in July. Small businesses account for the bulk of U.S.
employment.
Stocks in focus
Shares of Kate Spade (KATE) soared 9% Tuesday, putting them on
track to open at the highest level seen since April 2007, after the
handbags and accessories maker reported better-than-expected
second-quarter profit and sales.
Shares of Intercept Pharmaceutical (ICPT) leapt 30%, after the
company late Monday issued positive data about an experimental
treatment for liver disease.
Flowers Foods shares (FLO) stumbled 4.6% after disappointing
quarterly results and yearly forecast from the bakery goods
company, whose brands include Nature's Own.
Tesla Motors (TSLA) was off 0.7%. Consumer Reports magazine said
its long-term ownership of the Tesla Model S electric car has been
mostly positive, but there have been several reliability problems
with the car, echoing a similar result from Edmunds.com.
Apple shares (AAPL) edged up 0.9%, following a Bloomberg report
that production of new iPad models has begun. (Read more about the
day's notable movers here:
http://www.marketwatch.com/story/tesla-kate-spade-are-tuesdays-stocks-to-watch-2014-08-12.)
German stocks stumble, gold rises
Elsewhere, Germany's DAX 30 index fell after key ZEW
economic-sentiment figures came in sharply lower than anticipated.
Those expectations "were understandably low, given the data over
the last few months and the deteriorating trade relationship
between Europe and Russia," said Craig Erlam, market analyst at
Alpari UK, in emailed comments.
Oil futures (CLU4) fell 0.7%, turning lower after the
International Energy Agency said world oil demand will rise less
than previously thought this year. The IEA also said there's ample
supply of oil for the market.
Gold futures (GCZ4) gained $7.6 an ounce. Asian markets were
mixed, with Japan's Nikkei Average up 0.2%.
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