By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market edged higher on
Tuesday after a drop in factory orders during December was smaller
than economists had expected.
The main indexes rebounded from their worst declines since June
made a day earlier, sparked then by disappointing manufacturing
data that fed into fears over a possible slowdown in the
economy.
Tuesday, orders for goods produced in U.S. factories fell by
less than economists expected, led by a drop for durable goods.
The S&P 500 (SPX) was 9 points, or 0.5%, higher at 1,751.79,
recovering somewhat after Monday's steep selloff left the index
more than 5% below its peak, reached on Jan 15. The Dow Jones
Industrial Average (DJI) rose 47 points, or 0.3% to 15,424.63,
after dipping briefly dipping into red early Tuesday.
The Nasdaq Composite (RIXF) rose 26 points, or 0.6% to 4,022.71
at the open.
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The economic calendar will get busier later in the week, with
the ISM services index and ADP jobs reports due on Wednesday, and
the closely watched nonfarm-payrolls report due on Friday.
In earnings news, Sirius XM Holdings Inc. (SIRI) fell 1.4% after
the broadcasting firm posted a drop in fourth-quarter profit.
Michael Kors (KORS) shares soared 19% after the firm reported
stronger-than-expected third-quarter earnings and raised its
per-share earnings guidance.
Shares of Microsoft Corp. (MSFT) rose more than 1% on news that
the software giant had named Satya Nadella, head of the company's
cloud and enterprise business, as its new chief executive
officer.
J.C. Penney (JCP) reported a 2% increase in same-store sales for
the fourth quarter, marking the first time since the second quarter
of 2011 that the retailer has generated a positive quarterly sales
result. Shares rose 2.1%
Yum Brands Inc. (YUM) rallied 2.4% after the parent company of
KFC, Taco Bell and Pizza Hut said late Monday its fourth-quarter
earnings fell to 70 cents a share from 72 cents a share a year ago.
However, the company earned 86 cents a share on an adjusted basis,
better than the average of 79 cents projected in a FactSet
survey.
CME Group Inc. (CME) shares fell slightly after the exchange
operator posted fourth-quarter earnings below expectations
Archer Daniels Midland Co. (ADM) reported fourth-quarter
adjusted earnings of 95 cents a share, beating expectations of an
EPS of 85 cents. Shares rose 1.6%.
Two Fed officials speak on Tuesday. Richmond Fed President
Jeffrey Lacker said Tuesday that he expects tapering of the central
bank's bond-buying program to continue.
Chicago Fed President Charles Evans addresses potential policy
challenges for 2014 at 12:30 p.m. Eastern Time. Neither is a voting
member of the Fed's policy committee this year.
In other financial markets, European stocks headed for a third
straight day of losses, while Asian bourses closed in deep red. Oil
rebounded ahead of inventory data, while gold moved lower. In
currencies, the Australian dollar climbed against the U.S. dollar
after the country's central bank indicated it is no longer leaning
toward cutting interest rates.
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