By Anora Mahmudova and Sara Sjolin, MarketWatch
Mylan soars on Teva buyout news
U.S. stocks were mixed on Tuesday, with the Dow industrials
lagging behind gains by other major indexes as investors focused on
a barrage of earnings, as well as merger news in biotechnology
industry.
Gains over the past two sessions have sent the main benchmarks
to within striking distance of record levels reached a month
ago.
The S&P 500 (SPX) was up 4 points, or 0.2%, to 2,105.10,
with six of its 10 main sectors trading higher.
The Dow Jones Industrial Average (DJI) fell 12 points, or 0.1%,
to 18,024 after opening with a modest gain.
The Nasdaq Composite (RIXF) added 22 points, or 0.5%, to
5,017.
David O'Malley, CEO of Penn Mutual Asset Management with $20
billion in assets under management, said that while
consensus-beating earnings and M&A activity are providing
support, gains were capped by high valuations and worries over the
economic growth.
"The S&P 500 has been stuck in a range between 2,040 and
2,120 since February, as different forces are pushing and pulling
this market," O'Malley said.
"The bullish case for stocks is based on PE expansion but it is
hard to imagine given the drop in earnings, the Fed tightening
plans and global weakness," O'Malley said.
Earnings:DuPont & Co.(DD) reported a drop in first-quarter
earnings, partly due to the impact from a stronger dollar
(http://www.marketwatch.com/story/dupont-forecasts-larger-forex-hit-as-sales-slip-2015-04-21).
It also said that the strengthening greenback will dent its
earnings for the full year more than it initially forecast in
January. Shares slid 2.2%.
United Technologies Corp.(UTX) climbed 1.3% after the company
reported a 20% rise in first-quarter profit per share.
Harley-Davidson Inc.(HOG) shares slumped 9% after it cut
shipment outlook for the year.
Verizon Communications Inc.(VZ) easily topped Wall Street
forecasts
(http://www.marketwatch.com/story/verizons-earnings-top-estimates-2015-04-21)
with earnings of $4.34 billion, or $1.02 a share. But shares fell
1.5%.
Under Armour Inc.(UA) shares slumped 4.7% as sales fell below
expectations due to currency volatility and costs related to
acquisitions.
After the bell, Yahoo Inc.(YHOO) is projected to report
first-quarter earnings of 18 cents a share.
Teva Pharmaceuticals Industries Ltd. (TEVA) said Tuesday it is
offering to buy Mylan N.V.(MYL) for $82 a share in cash and stock.
Mylan shares jumped 8.6%, while Teva shares rose 2.7%.
For more on today's notable movers read Movers & Shakers
column
(http://www.marketwatch.com/story/yahoo-verizon-chipotle-yum-earnings-in-focus-2015-04-21).
Other markets: Japanese and Chinese stocks closed firmly in
positive territory, and Europe followed suit with solid gains.
Greece's Athex Composite Index , however, bucked the positive
trend and slumped 3.3% amid fears the country is running out of
cash. The European Central Bank is now looking at measures to rein
in support for Greek banks
(http://www.marketwatch.com/story/ecb-looking-at-reining-in-support-for-greek-banks-reports-2015-04-21)
under its emergency liquidity assistance (ELA), according to a
Bloomberg report on Tuesday.
See: Investors may be ignoring potential "collateral damage"
from Greece
(http://www.marketwatch.com/story/investors-may-be-ignoring-potential-collateral-damage-from-greece-2015-04-20).
Oil (CLK5) slipped 0.5%
(http://www.marketwatch.com/storyno-meta-for-guid) with investors
closely tracking oil-production levels in the U.S. and the
Organization of the Petroleum Exporting Countries. Metals were
mostly rising, while the ICE dollar index (DXY) was little changed.
Gold futures (GCK5) inched higher.
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