By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market closed higher
Tuesday, with the S&P 500 extending its winning streak to six
days, the longest streak of gains since September 2013.
Investors welcomed better-than-expected results from Comcast
Corp. (CMCSA) and Harley-Davidson, Inc.(HOG), while a flurry of
deal news in the health-care sector added to positive
sentiment.
The S&P 500 (SPX) ended the day 7.66 points, or 0.4%, higher
at 1,879.55, rising for six straight sessions. The health-care
sector lead gains thanks to deal activity between several
pharmaceutical companies, including Allergan and Valeant.
The Dow Jones Industrial Average (DJI) closed off session highs,
but still gained 65.12 points, or 0.4%, to 16,514.37. The Dow
Transportation Index (DJT) closed at a record level after adding
48.71 points, or 0.6%, to 7,734.90.
The Nasdaq Composite (RIXF) added 39.91 points, or 1%, to
4,161.46, recording the sixth consecutive session of gains, helped
by a 6% rally in Netflix, Inc. Biotechnology and pharmaceutical
companies also jumped. Both the Nasdaq Biotechnology index (NBI)
and the iShares Nasdaq Biotechnology ETF (IBB) rose 3.2%.
The day also continued a positive streak for Tuesday's. Tuesday
is the only weekday that has averaged with a gain so far this year
for the S&P 500 and the Dow, according to FactSet. Since the
beginning of the year, the S&P 500 and the Nasdaq Composite
fell only twice on a Tuesday. All three main indexes rose for the
past six Tuesdays.
Read the recap of the MarketWatch's live blog of today's
stock-market action.
Comcast, Lockheed Martin beat expectations; Allergan jumps
The day's economic data provided a little support. The sales
pace of existing homes ticked down in March to the slowest rate
since July 2012, according to data released Tuesday, however the
decline was smaller than the consensus rate forecast by economists
polled by MarketWatch. The SPDR S&P Homebuilder ETF (XHB)
gained 1%.
In earnings news, Comcast Corp. (CMCSA) shares climbed 1.9%
after the telecommunications company reported first-quarter
earnings and revenue ahead of analyst forecasts.
"Earnings have not been stellar, especially on the revenue side,
but it seems that results are good enough for investors who are in
a 'buy the dip' state of mind," said Channing Smith, managing
director at Capital Advisors.
"Deals are helping markets, but it is a worrying sign when both
acquisition target and acquiring companies rise after announcing a
deal," he added.
Lockheed Martin Corp. (LMT) fell 3% despite the aerospace and
defense firm posting better-than-expected first-quarter profit and
raising its 2014 earnings guidance.
Harley-Davidson Inc. rose 6.4% after beating quarterly earnings
estimates. The Milwaukee-based maker of motorcycles reported a 19%
rise in first-quarter profit, despite an uptick in loan losses at
the company's financing unit.
Netflix, Inc (NFLX) shares rallied 7% after the video-streaming
company beat expectations for the first-quarter results.
McDonald's Corp. (MCD) shares were down 0.7% even as the
company's first-quarter results missed expectations. Earnings for
the first three months of the year fell, dragged by a decline in
sales in the U.S. amid fierce competition and consumers' growing
appetite for healthier foods.
Xerox Corp. (XRX) shares were up 1.1% after the company reported
a fall in the first-quarter earnings as revenues continued to
shrink. The company trimmed its full-year adjusted earnings
expectations.
In deal news, shares of Allergan Inc. (AGN) surged 15% after
Valeant Pharmaceuticals International Inc. (VRX) and activist
investor Bill Ackman joined forces and proposed a buyout of
Allergan. Valeant shares rose 7.5%.
Reporting after the closing bell, shares in AT&T (T) slid
1.4% in aftermarket action after the company's first-quarter
earnings were in line with estimates.
Intuitive Surgical Inc shares drop 4% in aftermarket trade after
the company fell short of Wall Street's expectations on sales and
earnings for the first quarter.
In other financial markets, European stock indexes posted solid
gains on their first trading day after the Easter break amid
increasing deal activity in the pharma sector. Asian bourses closed
mixed. Meanwhile, oil declined and most metals prices moved
higher.
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