By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks ended Tuesday with small
gains, rebounding from three straight sessions of heavy selling.
Trading throughout the day was choppy, however, as renewed tensions
in Ukraine weighed on global markets.
The S&P 500 (SPX) ended the day 6.92 points, or 0.4%, higher
at 1,851.96, moving above a key technical level. The benchmark
index turned slightly positive for the year. Utilities and consumer
discretionary sector stocks led the gains.
The Dow Jones Industrial Average (DJI) added 10.27 points, or
0.1%, to 16,256.14 by the end of the session.
The Nasdaq Composite (RIXF) rose 33.23 points, or 0.8%, to
4,112.99.
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action.
Alcoa Inc. (AA) unofficially kicked off the first-quarter
earnings season, posting results after the closing bell. The
aluminum producer's adjusted earnings per share topped estimates,
but revenue came in just below expectations. Shares rose 2.4% in
after-hours action. Read: Why Alcoa earnings still matter
On Friday, J.P. Morgan Chase & Co. (JPM) and Wells Fargo
& Co. (WFC) are set to release results.
More than 90 companies in the S&P 500 have warned profit
will fall short of forecasts, according to FactSet data. Analysts
fear a poor earnings season could derail this year's rally.
"Investors already lowered their expectations for the
first-quarter earnings and it is not the results themselves but the
forward guidance that will be key," said Chris Gaffney, senior
market strategist, EverBank.
"The selling of high-momentum stocks is not surprising as their
valuations were too high. We are now seeing a rotation from those
highflying companies into large-cap cyclicals and dividend-paying
defensive stocks," he added.
"Earnings results over the next month may give another
indication of which parts of the economy were most impacted by
winter storms (and we can expect that weather is likely to get the
blame for any shortfalls)," wrote Colin Cieszynski, senior market
analyst at CMC Markets, in a note.
Among individual companies, shares of Gigamon Inc. (GIMO) tanked
34% after the data-traffic technology firm cut its revenue
outlook.
James River Coal Co. (JRCC) sank 63% after the Appalachian coal
miner late Monday filed for Chapter 11 bankruptcy protection as it
continued its search for a buyer or investor.
First Solar, Inc. (FSLR) shares rose 7%, making it a top
performer on the S&P 500. Analysts at Citigroup last week
identified First Solar as one of the stocks that is likely to
benefit from investors' interest in renewable energy.
Yelp Inc. (YELP) shares gained 1.9% Tuesday after analysts at
SunTrust Robinson Humphrey upgraded the Internet stock to buy from
neutral. The recent slide in the stock's value has created some
opportunities for investors, the analysts said. Oppenheimer
analysts also upgraded the Internet consumer review site's
stock.
FireEye Inc. (FEYE) shares climbed 4% after Wedbush analyst
Sanjit Singh upgraded the stock to outperform from neutral. The
maker of security platforms that protect against cyberattacks saw
its stock slide after a follow-on offering last month and broader
selloff in technology stocks.
Consol Energy Inc. (CNX) shares climbed 3.2% after the energy
company reported earnings results and issued an improved
outlook.
In global markets news, Asian markets closed mostly higher,
while European stocks continued to decline. Gold(GCM4) and oil
(CLK4) advanced, finding support in a weaker dollar.
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