By Kate Gibson and Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks were mildly higher on
Tuesday as investors mostly adapted a cautious tone a day ahead of
a monetary-policy decision from the Federal Reserve.
Of the 304 companies that have reported earnings results for the
second quarter, 201 have beaten estimates, 76 have missed, and 27
have met, producing a a beat rate of 66%, above the historical
average, according to emailed research by Christine Short, an
associate director S&P Capital IQ.
"Earnings so far are better than expected, but we haven't seen
much in the way of revenue figures," said Robert Pavlik, chief
market strategist at Banyan Partners LLC.
After a 72-point gain and a 43-point drop, the Dow Jones
Industrial Average (DJI) was lately up 21.12 points, or 0.2%, at
15,543.09
Pfizer Inc. (PFE) rose 0.6% after the drug maker and Dow
component posted second-quarter results.
The S&P 500 index (SPX) advanced 2.96 points, or 0.2%, to
1,688.29, with technology leading sector gains and
telecommunications falling hardest.
After rising to a 12-year high, the Nasdaq Composite (RIXF)
climbed 20.29 points, or 0.6%, to 3,619.42.
Advancers pulled just ahead of decliners on the New York Stock
Exchange, where 458 million shares traded as of 3:35 p.m. Composite
volume cleared 2.7 billion.
On Monday, composite volume on the Nyse came in just under 2.8
billion, the seventh lowest volume day so far this year.
"People are a little skeptical here, there's a pattern that is
raising questions for the overall market, whether we can continue
the trend of gains without any kind of give back," said Pavlik,
referring to a market that is up 18% for the year.
The dollar (DXY) gained against the currencies of major U.S.
trading partners and the yield on the benchmark 10-year note
(10_YEAR) fell 1 basis point to 2.600%.
Oil futures (CLU3) dropped $1.47, or 1.4%, to $103.08 a barrel
and gold prices (GCZ3) declined $4.80, or 0.4%, to $1,325.80 an
ounce on the New York Mercantile Exchange.
Community Heath Systems Inc. (CYH) fell 4% after the for-profit
hospital operator said it would buy competitor Health Management
Associates Inc. (HMA) for $3.9 billion. Shares of Health Management
Associates slid 11% after the company said it had received more
subpoenas from regulators seeking information about its doctor
relationships and some of its emergency-room operations.
J.P. Morgan Chase & Co. (JPM) agreed to pay a $285 million
penalty and disgorge $125 million to settle allegations of
energy-market manipulation in California and the Midwest. Shares of
the Dow component were off 0.5%.
Sprint Corp. (S) rose 6.6% after the telecommunications firm
posted a larger quarterly loss but revenue expanded as consumers
spent more on mobile services.
Facebook Inc. (FB) gained 6.4% after the social-networking
company announced the launch of a mobile-games unit.
Pitney Bowes Inc. (PBI) jumped 14% after the supplier of postal
meters and other equipment reached an agreement to sell its
management-services unit to Apollo Global Management LLC (APO) for
about $400 million.
Goodyear Tire & Rubber Co. (GT) jumped 8.7% after its
second-quarter earnings beat expectations.
Aetna Inc. (AET) shares held flat and Eastman Chemical Co. (EMN)
shares rallied 7.2% after both companies reported quarterly
earnings that surpassed expectations.
Coach Inc. (COH) retreated 8.5% after the maker of luxury
handbags reported a drop in fiscal fourth-quarter profit.
Shares of Mosaic Co. (MOS) declined 18% as the company and other
fertilizer manufacturers were hit by price concerns that came with
a dissolving partnership among the top potash producers.
The Federal Open Market Committee on Tuesday began a two-day
session, with the central bank likely to hold its benchmark
interest rate at 0.25%. Many strategists believe the central bank
will begin curbing its monthly bond purchases in September.
Tuesday economic reports had the S&P/Case-Shiller index of
property values rising 12.2% from May 2012 to last month, its
largest 12-month rise in more than 13 years, showing continuing
improvement in residential real estate.
Separately, the Conference Board's consumer-confidence index
fell to 80.3 in July from an upwardly revised five-year high of
82.1 the prior month.
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