By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market reversed opening
losses and edged higher on Tuesday as investors digested a number
of economic reports, including new-home sales, home prices and
consumer confidence.
The S&P 500 (SPX) was up by a point at 1,963.37, scaling an
intraday record. The Dow Jones Industrial Average (DJI) inched up 4
points to 16,939.82. The Nasdaq Composite (RIXF) was the best
performing index, adding 13 points, or 0.3%, to 4,381.34
Follow MarketWatch's live blog of today's stock-market
action.
New U.S. homes sold at an annual rate of 504,000 in May to mark
the fastest increase in six years, the government said Tuesday. Yet
the surprising gain - economists polled by MarketWatch expected a
440,000 increase - was led by a huge surge in the Northeast. Sales
of existing homes in May hit the fastest pace in seven months.
Home prices rose in April as the spring selling season got
underway, even as annual growth skidded, dropping to the slowest
pace in more than a year, according to data released Tuesday
morning. April data show that home-price growth has turned
S&P/Case-Shiller's price barometer tracking 20 cities showed
that year-over-year price growth hit 10.8% in April -- a fast pace
but down sharply from annual growth of 12.4% in March and a recent
peak of 13.7% in November.
A gauge of consumer confidence rose to 85.2 in June -- the
highest level since January 2008 -- from 82.2 in May, the
Conference Board Tuesday.
Investors will pay attention to speeches from several Federal
Reserve officials.
Speaking in New York on Tuesday morning, Charles Plosser, the
president of the Philadelphia Fed, said that several variations of
a well-known monetary policy rule uniformly call for the Federal
Reserve to lift interest rates in the third quarter of 2014, well
before the market now expects the central bank to move.
Also on the Fed speakers docket, New York Fed President William
Dudley and San Francisco Fed President John Williams.
U.S. Treasury Secretary Jack Lew will testify before a House
committee on a report from the Financial Stability Oversight
Council at 2 .p.m. Eastern Time.
Walgreen disappoints, Carnival Corp earnings top estimates
In corporate news, cruise company Carnival Corp. (CCL) beat
consensus profit and revenue estimates and raised its full-year
outlook. However, shares fell 2.2%.
Shares of Walgreen Co. (WAG) also fell 2.3% after the drugstore
chain operator missed Wall Street estimates.
Vertex Pharmaceuticals (VRTX) shares rocketed 41% to $94.21
after announcing that two Phase 3 trials of its cystic fibrosis
treatment met their primary endpoint.
xG Technology Inc. (XGTI) shares soared 43% to $2.64 after the
wireless communications firm said it was selected by the U.S. Army
as a subcontractor to provide communications and network services.
The deal is worth $497 million.
Elizabeth Arden (RDEN) stock fell 3.9% after the company's board
released details of a broad restructuring program, according to a
filing with the U.S. Securities and Exchange Commission.
Asian stocks rise, European shares turn lower
In Asia overnight, equities ended mostly higher ahead of a
presentation of an economic reforms package by Japanese Prime
Minister Shinzo Abe. In Europe, the Stoxx Europe 600 turned lower
after a downbeat German business confidence survey.
Among commodities, crude-oil (CLQ4) prices were mostly
unchanged, up 2 cents to $106.08 a barrel, while gold futures
(GCQ4) pushed higher, trying to extend the winning streak to 5
days. Prices rose $3.5 to $1,322.20 a troy ounce.
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