By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks staged a rebound in early
trade Tuesday as investors shrugged off concerns over sectarian
conflict in Iraq and disappointing government data on inflation and
housing.
The S&P 500 (SPX) was 3 points, or 0.2%, higher at 1,940.66.
The Dow Jones Industrial Average (DJI) added 25 points, or 0.2%, to
16,807.85.
The Nasdaq Composite (RIXF) outperformed other benchmarks,
adding 20 points or 0.5%, to 4,340.60.
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action.
In economic news, U.S. consumer prices rose sharply in May for
the second straight month, prompting fears that the Federal Reserve
may begin tightening the monetary policy sooner than the markets
are expecting.
Construction on new U.S. homes fell by 6.5% in May and builders
trimmed plans for future projects in another sign that a hoped-for
spring revival in the housing market remains elusive.
Officials at the Federal Open Markets Committee began their
two-day policy-setting meeting. Read: Fed mulling exit fees on bond
funds: report.
Nuance Communications Inc. (SSFT) shares climbed 1.3% after
reports on Monday that the speech-recognition software maker had
held talks with suitors, including Samsung Electronics Co. and
private equity funds. Nuance shares are up over 27% this year so
far.
Tesla Motors Inc. (TSLA) shares rose 2.2% building on an 8.8%
gain in the previous session over reports about a possible
collaboration with its competitors. Tesla shares have climbed 53%
year to date.
Shares of Gentiva Health Services Inc. (GTIV) rallied 3.9% after
Kindred Healthcare Inc. (KND) sweetened its bid for the home-health
and hospice company.
Oil prices, indeed were pushing lower, with August Brent and
July WTI crude oil (CLN4) each down around 0.6%. U.S. President
Barack Obama said he would deploy up to 275 troops to Iraq to
"provide support and security" for U.S. staff and the U.S. Embassy
in Baghdad, amid unrest in the country. He informed Congress of the
decision in a letter sent Monday to House and Senate leaders John
Boehner and Patrick Leahy.
European stocks gave up gains and were edging lower after the
economic reports in the U.S.
Gold for August delivery (GCQ4) fell over $10, along with oil
prices. The pound fell against the dollar (GBPUSD) after annual
inflation in the U.K. slowed to its lowest rate in almost five
years, easing pressure on the Bank of England to hike rates.
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