By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks turned 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.
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 action 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 2.14 points at
1,595.75, with healthcare companies driving losses and technology
the best performing of its 10 major industry sectors. The index is
on track to rise 1.7% in April, which would mark a sixth straight
month of gains and the index's longest winning run since a
seven-month stretch that ended in September 2009.
Apple Inc. (AAPL) shares surged 3.3% 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.
The order book, one means of measuring investor demand for the
debt, hit $50 billion, according to Bloomberg News, which cited a
person familiar with the transaction. The offering could pan out to
be the largest non-bank bond sale in history, as Apple looks for
cash to reward shareholders.
The Dow Jones Industrial Average (DJI) added 2.45 points to
14,821.20, with its 30 components evenly divided between red and
green.
Blue-chip losses were led by Pfizer Inc. (PFE), down 3.4% 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 17.89 points to 3,324.91,
readying the tech-laden index for a 1.8% monthly gain.
For every two shares on the decline, more than three gained on
the New York Stock Exchange, where 324 million shares traded as of
1:30 p.m. Eastern. Composite volume approached 2 billion.
Other notable movers had Aetna Inc.'s (AET) shares rising 3.2%
after the health insurer reported a slight drop in first-quarter
earnings but raised its full-year operating-earnings estimate.
Best Buy Co. (BBY) shares rallied 6.7% 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.
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.
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