By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks mostly fell on Tuesday,
slicing April gains, as investors took in more economic data that
including one illustrating contraction in Chicago-area
manufacturing.
But several analysts 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.
"There's some technical resistance right at the high," Randy
Frederick, managing director of active trading and derivatives at
the Schwab Center for Financial Research, said of the 1,593.61
close, a record, by the S&P 500 (SPX) on Monday.
On Tuesday, the S&P 500 index was down 1 point at 1,592.64,
with health-care companies driving losses and technology the best
performing of its 10 major industry sectors.
Up 1.5% for April, a positive finish for a sixth straight month
would mark the index's longest winning run since a seven-month
stretch that ended in September 2009.
The Dow Jones Industrial Average (DJI) lost 27.15 points to
14,79160, with 15 of its 30 components in the red, led by Pfizer
Inc. (PFE), down 3.3% after the drug manufacturer cut its 2013
profit outlook and reported first-quarter earnings that missed Wall
Street estimates.
The Nasdaq Composite (RIXF) rose 6.16 points to 3,313.17.
Helping the Nasdaq higher, Apple Inc. (AAPL) shares gained 1.8%
after the iPhone maker detailed a six-part bond offering in a
regulatory filing on Tuesday. Read story about potential impact on
the bond market.
Advancers pulled just ahead of decliners on the New York Stock
Exchange, where 196 million shares traded as of 11:15 a.m.
Eastern.
Composite volume surpassed 1.1 billion.
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 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) shares rose 3.2% after the health insurer
reported Tuesday a slight drop in first-quarter earnings but raised
its full-year operating earnings estimate.
Best Buy Co. (BBY) shares rallied 9.9% 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 17% after releasing
first-quarter results and cutting its dividend.
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