By Ellie Ismailidou and Carla Mozee, MarketWatch
U.S. airliners and online-travel brands take a hit after Turkey
downs Russian jet
U.S. stocks erased losses Tuesday afternoon, buoyed by a rise in
oil prices and as worries eased over the aftermath of Turkey's
downing of a Russian warplane.
The S&P 500 gained 2 points, or 0.1%, to 2,087. The Dow
Jones Industrial Average rose 30 points, or 0.2%, to 17,822 and the
Nasdaq Composite pared earlier losses, trading down 3 points, or
0.1%, to 5,099.
Earlier in the day, all indexes were in the red, as investors
took in a flurry of mixed U.S. economic data amid fresh global
tensions after Turkey shot down a warplane near the Syrian border
(http://www.marketwatch.com/story/turkey-shoots-down-jet-fighter-near-syrian-border-2015-11-24).
"There was a knee-jerk reaction" in the markets following the
reports, said Mike van Dulken, head of research at Accendo Markets,
who noted the U.S. on Monday issued a global travel alert on the
potential for terrorist attacks.
"That's quite a move to make" on Thanksgiving week, van Dulken
said. "But it's a sign of the times. Brussels is likely to be in
lockdown next week. When we get events like this highlighting the
fragility of situation...it adds fuel to the fire,
unfortunately."
Travel-related companies, with shares of United Continental
Holdings, Inc. (UAL) falling 3%, those of Southwest Airlines Co.
(LUV) dropping 2.8% and those of Delta Air Lines, Inc. (DAL) down
3.1%. Shares of global online travel company Expedia, Inc. (EXPE)
lost 2.8% while Priceline Group Inc. (PCLN) shares fell 2.8%.
Stocks moved into positive territory in the afternoon after
Obama and Hollande's joint appearance at the White House
(http://www.marketwatch.com/story/obama-frances-hollande-vow-to-step-up-fight-against-isis-2015-11-24)--the
first since the terrorist attacks in Paris.
Meanwhile, a 2.6% jump in oil prices gave energy companies'
shares a boost, including a 5.6% jump in the shares of Marathon Oil
Corporation (MRO), a 4.4% increase in those of Murphy Oil
Corporation (MUR) and a 4.3% rise in the shares of Chesapeake
Energy Corporation (CHK).
Earlier on Tuesday morning, the U.S. government said the U.S.
economy grew at a somewhat faster 2.1% pace in the third quarter
(http://www.marketwatch.com/story/us-third-quarter-gdp-growth-raised-to-21-2015-11-24)instead
of the initial reading of 1.5%, mainly due to a jump in the value
of business inventories.
But consumer spending, the main engine of U.S. economic growth,
grew below expectations
(http://www.marketwatch.com/story/third-quarter-gdp-upped-to-21-from-15-2015-11-24),
while inflation as measured by the personal consumption expenditure
index increased at a 1.3% annual clip, well below the Federal
Reserve's 2% target. Meanwhile, consumer confidence fell
(https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwj4g87Q4qnJAhVBURoKHYRxCHkQqQIIHTAA&url=http%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fconsumer-confidence-falls-to-lowest-level-in-14-months-2015-11-24&usg=AFQjCNFKuGP_gqtQiRKLQTzPdA48XVTcTA&sig2=umurisp4pFXNf0ShhnXlfA&bvm=bv.108194040,d.dmo)in
November to the lowest level in more than a year.
Tuesday's data were largely priced into the market and confirmed
that "the U.S. economy is continuing to grow at a moderate pace
that could support an interest-rate hike," said Chris
Faulkner-MacDonagh, market strategist at Standard Life
Investments.
Volume will likely become more subdued as the market heads
toward Thanksgiving Day on Thursday. Trading will closed for the
holiday and reopen for a half-day on Friday.
Read: When do markets close around Thanksgiving?
(http://www.marketwatch.com/story/when-do-markets-close-around-thanksgiving-2015-11-23)
Other markets: European stocks posted a second day of losses
after the Turkish downing of the jet, with Russia's Micex index
losing 3.1%, its biggest decline since March 10, according to
FactSet data. Oil prices gained in the aftermath
(http://www.marketwatch.com/story/oil-prices-rise-as-investors-go-bargain-hunting-2015-11-24),
up around 2.3% above $42 a barrel.
In Asia, Australian stocks
(http://www.marketwatch.com/story/asian-stocks-under-pressure-from-weak-commodities-prices-2015-11-24)
stood out with a 1% loss, as a slide in commodity prices put
pressure on the resources-heavy market.
Gold prices found some strength, rebounding somewhat from a
nearly six-year low. The U.S. dollar was down 0.3% at 99.5420
against major rivals.
Data: In other U.S. data, home prices picked up speed in
September
(http://www.marketwatch.com/story/home-price-gains-accelerate-in-september-spcase-shiller-says-2015-11-24),
according to the closely watched S&P/Case-Shiller index.
Meanwhile, the nation's trade deficit also widened in the third
quarter, the U.S. government said Tuesday, as imports were revised
up but exports were weaker than previously reported.
Stocks to watch: PMC-Sierra Inc. (PMCS) shares dropped 1.6%
after the chip company agreed to be purchased by Microsemi Corp
(http://www.marketwatch.com/story/microsemi-agrees-to-buy-pmc-sierra-in-25-billion-cash-and-stock-deal-2015-11-24).(MSCC)
in a cash-and-stock deal valued at about $2.5 billion. Meanwhile,
Microsemi's shares fell nearly 6%.
Boulder Brands Inc. (BDBD) shares gained 8.5% after the maker of
Smart Balance butter spreads agreed to be acquired by Pinnacle
Foods Inc. (PF) for $975 million, including debt.
Shares of Signet Jewelers Limited (SIG) were down 3.4% after the
Bermuda-based company's third-quarter results missed expectations
(http://www.marketwatch.com/story/signet-jewelers-misses-expectations-in-q3-2015-11-24).
Meanwhile, Tiffany & Co. (TIF) shares gained 4.2 after the
open, reversing a premarket drop after the high-end jeweler's
quarterly profit and sales fell,
(http://www.marketwatch.com/story/tiffany-profit-and-sales-fall-as-strong-dollar-weighs-2015-11-24)
weighed by strength in the U.S. dollar.
Campbell Soup Co. (CPB) climbed 2.8 after raising its fiscal
2016 adjusted earnings view to $2.75 to $2.83 a share.
Chico's FAS Inc. (CHS) fell around 3.3% after the company said
early Tuesday its board approved a new share buyback of up to $300
million
(http://www.marketwatch.com/story/chicos-to-buy-back-up-to-300-million-of-shares-raises-quarterly-dividend-33-2015-11-24).
The apparel retailer also raised its quarterly dividend 3.3%.
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(END) Dow Jones Newswires
November 24, 2015 14:43 ET (19:43 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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