By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks turned mostly higher
Tuesday, with the S&P 500 in position for its longest monthly
win streak since 2009, as the market mulled economic reports and
corporate earnings.
And, 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 up 1.2 points at 1,594.81,
with healthcare companies driving losses and technology the best
performing of its 10 major industry sectors. Up 1.6% 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 4.91 points to
14,813.84, with its 30 components evenly divided between red and
green.
Blue-chip losses were led by Pfizer Inc. (PFE), down 3.1% after
the drug manufacturer cut its 2013 profit outlook and reported
first-quarter earnings that missed Wall Street estimates.
International Business Machines Corp. (IBM) gained after the
computer-services provider hiked its dividend and approved a $5
billion share buyback.
The Nasdaq Composite (RIXF) rose 11.18 points to 3,318.20.
Helping the Nasdaq, Apple Inc. (AAPL) shares gained 2.1% 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.
For every three shares on the decline, more than four gained on
the New York Stock Exchange, where 249 million shares traded as of
12:05 p.m. Eastern.
Composite volume approached 1.5 billion.
The day's economic reports were mixed. 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 4.2% 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 8.7% 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 16% after releasing
first-quarter results and cutting its dividend.
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