By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks fell on Tuesday, slicing
April gains, as investors took in more economic data that including
one illustrating contraction in Chicago-area manufacturing.
But one analyst cited the market's lofty levels as part of the
equation.
"We're coming off a peak," said Alan Skrainka, chief investment
officer at Cornerstone Wealth Management in Des Peres, Mo., who
chalked up the day's drop to the "normal ebb and flow" of the
equities market.
Apple Inc. (AAPL) shares gained 0.9% after the iPhone maker
detailed a six-part bond offering in a regulatory filing on
Tuesday.
Pfizer Inc. (PFE) fell 3.4% after the drug manufacturer cut its
2013 profit outlook and reported first-quarter earnings that missed
Wall Street estimates.
Among the day's economic reports, the S&P/Case-Shiller
home-price index rose 0.3% in February, and 9.3% year-over-year,
while a gauge of manufacturing in the Chicago area slid to a
more-than three-year low in April and the Conference Board's
consumer-confidence index jumped sharply in April.
The Dow Jones Industrial Average (DJI) lost 60.40 points to
14,758.35.
The S&P 500 index (SPX) fell 4.96 points to 1,588.65, with
health-care companies losing the most ground and technology faring
the best among its 10 major industry sectors.
Best Buy Co. (BBY) rallied 9.7% after the electronics retailer
said it would sell its 50% stake in Carphone Warehouse Group's
European business to Carphone Warehouse.
Pitney Bowes Inc. (PBI) retreated nearly 18% after releasing
first-quarter results and cutting its dividend.
The Nasdaq Composite (RIXF) rose 3.15 points to 3,303.89.
For every four stocks rising, five fell on the New York Stock
Exchange, where 138 million shares traded as of 10:25 a.m.
Eastern.
Composite volume neared 725 million.
On Monday, the S&P 500 ended up 11.37 points at 1,593.61,
with the benchmark up 1.6% for the month. A positive finish to
April would deliver a sixth straight month of gains, the index's
longest winning run since a seven-month stretch that ended in
September 2009.
The Federal Open Market Committee will begin its two-day meeting
on monetary policy on Tuesday, with a decision slated for
Wednesday. With inflation below the Fed's 2% target, and data last
week showing the U.S. economy growing less than expected in the
first quarter, the FOMC is expected to keep its bond-buying program
at $85 billion a month.
On Thursday, the European Central Bank could trim its benchmark
interest rate.
Aetna Inc. (AET) reported Tuesday a slight drop in first-quarter
earnings, but the health insurer raised its full-year operating
earnings estimate.
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