By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose on Tuesday, with the
S&P 500 index posting its longest monthly win streak since
September 2009, as investors cheered corporate earnings and ongoing
monetary stimulus.
The bull market, which entered a fifth year in March, has been
"driven by strong earnings and three rounds of bond purchases by
the [Federal Reserve]," said Alan Skrainka, chief investment
officer at Cornerstone Wealth Management in Des Peres, Mo.
Skrainka and other analysts also cited the market's lofty levels
as part of Tuesday's equation, which had the Dow Jones Industrial
Average (DJI) falling as much as 84 points and rising as much as
21, and the S&P 500 (SPX) trading in a 10-point range on either
side of neutral.
"We're coming off a peak," said Alan Skrainka, who chalked up
the day's action to the "normal ebb and flow" of the equities
market.
On Tuesday, the S&P 500 added 3.96 points to a record-high
close of 1,597.57, with health-care companies driving losses and
technology the best performing of its 10 major industry
sectors.
The S&P 500 gained 1.8% in April, marking the index's
longest winning run since a seven-month stretch that ended in
September 2009.
"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 by the S&P 500 (SPX) on Monday.
The Dow Jones Industrial Average (DJI) added 21.05 points to
14,839.80, leaving it up 1.8% for the month.
Blue-chip losses were led by Pfizer Inc. (PFE), 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 21.77 points to 3,328.79, with
the tech-laden index climbing 1.9% in April.
Apple Inc. (AAPL) shares surged 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.
For every share that fell, roughly two rose on the New York
Stock Exchange, where nearly 887 million shares traded. Composite
volume approached 3.7 billion.
Oil prices fell in April, with crude futures (CLM3) down almost
4% for the month. Gold futures (GCM3) lost nearly 8% in April.
Moving issues
Shares of Symantec Corp. (SYMC) fell as much as 11% before their
trading was temporarily halted by the Nasdaq, with no apparent news
prompting the slide that occurred just after 10 a.m. Eastern. A
company spokesperson said a large order to sell shares without any
specific floor price prompted the flash crash and triggered the
circuit breaker.
The entity behind the order to sell around 511,000 shares did so
"without any type of limits. It wasn't necessarily an erroneous
trade, as we're not aware of any requests to have it removed or
retracted. In this case, they did mean to sell it, but skipped a
few important steps," said Symantec spokesperson Chris Paden.
Other notable movers had Aetna Inc.'s (AET) shares rising 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 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 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 began 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.
Recent weak economic reports "probably put the Fed hawks back in
their cage. This in turn adds fuel for the equity markets," noted
Elliot Spar, market strategist at Stifel, Nicolaus & Co. Inc.,
in afternoon commentary.
But, if all the quantitative easing can only get 2% annualized
GDP growth and "major companies continue to come up short with
respect to revenue, what will be the catalyst for the bull's next
leg up?" he said.
On Thursday, the European Central Bank's governing council will
hold a monetary-policy meeting and could trim its benchmark
interest rate.
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