By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market edged higher as
a surprise rise in consumer confidence index and upbeat earnings
results lifted sentiment.
Positive results from Ford Motor Co., Pfizer Inc. and DuPont
lifted blue chips, while disappointing Apple Inc. numbers capped
gains on the Nasdaq Composite.
The S&P 500 (SPX) rose 8 points, or 0.5% to 1,789.91, on
track to snap a three-day skid. The Dow Jones Industrial Average
(DJI) added 73 points, or 0.5% to 15,912.02, on track to break a
five-day losing streak.
The Nasdaq Composite (RIXF) rebounded from earlier losses and
was up 6 points, or 0.2% at 4,089.97.
The Nasdaq 100 index (NDX) , which includes the 100 largest
non-financial equities listed on the Nasdaq Stock Market, fell 8
points, or 0.2% to 3,500.79, largely due to losses in Apple
Inc.
Consumer confidence climbed in January, with assessments of both
the present situation and expectations improving, The Conference
Board said Tuesday. The surprise rise took the index to the 80.7
level, topping the economists' estimate, who expected a slight
decline.
Earlier, stock index futures had pared gains after disappointing
data on durable goods orders and a small drop in house prices in
December.
Orders for big-ticket U.S. goods sank 4.3% in December and
posted the biggest drop since midsummer, largely because of fewer
bookings for autos, large aircraft and military hardware, the
government said Tuesday. The disappointing report -- economists
expected a 1.8% increase in orders -- could lead to a reduction in
forecasts for fourth-quarter gross domestic product.
U.S. home prices ticked down 0.1% in November, the first decline
in a year, with nine of 20 tracked cities posting price drops as
winter approached, according to data released Tuesday.
Investors will also focus on the Federal Reserve, which begins
its two-day meeting on Tuesday. Most analysts expect the Fed
continue to reduce its bond-buying program by $10 billion a
month.
In earnings news, Apple(AAPL) reported disappointing iPhone
sales in its fiscal second-quarter report after Monday's close and
shares sold off in after-hours trade. Shares dropped 7% on Tuesday,
weighing on technology-oriented indexes.
Ford (F) shares rose 0.2% after the company beat analysts'
estimates for earnings and revenue. The firm reported adjusted
fourth-quarter earnings of 31 cents a share and a rise in revenue
to $37.6 billion. Analysts were expecting earnings of 27 cents a
share and $34.96 billion in revenue. The automaker also said it
expects 2014 pretax profit of between $7 billion and $8
billion.
DuPont(DD) shares reversed earlier gains and were down 0.6% even
as the company reported profit doubled in the fourth quarter
year-to-year and beat Wall Street expectations. The chemical
company said it will start a $5 billion share-repurchase
program.
Pfizer (PFE) shares gained 2.8% after the pharmaceutical
company's results were above analysts' forecasts. Adjusted earnings
rose 22% to 56 cents per share, and revenue fell 2% to $13.56
billion. Analysts polled by FactSet had expected earnings of 52
cents per share on sales of $13.36 billion
Shares of Seagate Technology Inc. (STX) fell more than 11.3%
after the computer data-drive company posted a profit below Wall
Street forecasts late Monday.
Yahoo Inc. (YHOO) will report after the U.S. market close
Tuesday. Shares in the company were up 1%.
More must-reads from MarketWatch:
What breaking the 50-day average really means
Orders for durable goods fizzle in December
Apple's beating, TPDH and America's 'false dawn' recovery
Subscribe to WSJ: http://online.wsj.com?mod=djnwires