By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- After an initial wobble, U.S. stocks
inched higher on Tuesday, rebounding from three-straight sessions
of heavy selling. However, caution prevailed as renewed tensions in
Ukraine weighed on global markets.
With the economic calendar light on data, investors are likely
to focus on earnings as well as the situation in Eastern
Europe.
The S&P 500 (SPX) rose 4 points, or 0.2%, to 1,849.36, while
the Dow Jones Industrial Average (DJI) gained 14 points, or 0.1%,
to 16,258.33.
The Nasdaq Composite (RIXF) gained 31 points, or 0.8%, to
4,110.90.
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action.
Alcoa Inc. (AA) will report after the closing bell, unofficially
kicking off the first-quarter earnings season. The aluminum
producer, which is considered an industrial bellwether, was kicked
out of the Dow index last year. Shares in the company were up 0.2%.
Read: Why Alcoa earnings still matter
On Friday, J.P. Morgan Chase & Co. (JPM) and Wells Fargo
& Co. (WFC) are set to release results.
More than 90 companies in the S&P 500 have warned profit
will fall short of forecasts, according to FactSet data. Analysts
fear a poor earnings season could derail this year's rally.
"Investors already lowered their expectations for the
first-quarter earnings and it is not the results themselves but the
forward guidance that will be key," said Chris Gaffney, senior
market strategist, EverBank.
"The selling of high-momentum stocks is not surprising as their
valuations were too high. We are now seeing a rotation from those
high-flying companies into large-cap cyclicals and dividend-paying
defensive stocks," he added.
"Earnings results over the next month may give another
indication of which parts of the economy were most impacted by
winter storms (and we can expect that weather is likely to get the
blame for any shortfalls)," wrote Colin Cieszynski, senior market
analyst at CMC Markets, in a note.
Among individual companies, shares of Gigamon Inc. (GIMO) tanked
32% after the data-traffic technology firm cut its revenue
outlook.
James River Coal Co. (JRCC) sank 50% after the Appalachian coal
miner late Monday filed for Chapter 11 bankruptcy protection as it
continued its search for a buyer or investor.
First Solar, Inc. (FSLR) shares rose 7.7%, making it a top
performer on the S&P 500. Analysts at Citigroup last week
identified First Solar as one of the stocks that is likely to
benefit from investors' interest in renewable energy.
Yelp Inc. (YELP) shares gained 2.7% Tuesday after analysts at
SunTrust Robinson Humphrey upgraded the Internet stock to buy from
neutral. The recent slide in the stock's value has created some
opportunities for investors, the analysts said. Oppenheimer
analysts also upgraded the Internet consumer review site's
stock.
FireEye Inc. (FEYE) shares climbed 5.8% after Wedbush analyst
Sanjit Singh upgraded the stock to outperform from neutral. The
maker of security platforms that protect against cyber attacks saw
its stock slide after a follow-on offering last month and broader
selloff in technology stocks.
Consol Energy Inc. (CNX) shares climbed 2.8% after the energy
company reported earnings results and issued an improved
outlook.
In global markets news, Asian markets closed mostly higher,
while European stocks continued to decline. Gold(GCM4) and oil
(CLK4) advanced, finding support in a weaker dollar.
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