By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks extended gains on Tuesday,
as better-than-expected earnings from Merck & Co. Inc. and
Sprint Corp. outweighed mildly disappointing economic reports.
Consumer confidence dipped slightly in April, coming in below
economists' forecasts. Separately, U.S. home-price growth slowed in
February for the fourth consecutive month.
The S&P 500 (SPX) was 11 points, or 0.6%, higher at
1,880.59. The benchmark index is about 10 points off its record
close. The Dow Jones Industrial Average (DJI) jumped 108 points, or
0.7%, to 16,556.97. The Nasdaq Composite (RIXF) gained 35 points,
or 0.9%, to 4,109.71.
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"Overall, earnings have been much higher than expected, beating
vastly lowered expectations," said Paul Zemsky, chief investment
officer of Multi-Asset Strategies at ING U.S. Investment
Management.
"After the selloffs in the momentum stocks, markets are much
more balanced now and we are in a place where fundamentals are
driving the markets," he added.
In earnings news, Sprint Corp. (S) shares rallied 9.7% after the
company posted a smaller-than-expected loss in the first
quarter.
Merck & Co. (MRK) rose 3% after it reported
higher-than-expected earnings. The company is leading gainer on the
Dow Industrials.
Coach Inc. (COH) shares fell 8.8% after the luxury-goods
retailer reported weak North American sales.
Shares of Archer Daniels Midland Co. (ADM) dropped 3.5% after
the company's first-quarter profit and sales missed analysts'
forecasts.
Shares of Amicus Therapeutics Inc. (FOLD) soared 22% to $2.25
after the company announced positive data in a study of a drug to
treat patients with Fabry disease.
After the closing bell, Twitter Inc. (TWTR) and eBay Inc. (EBAY)
are scheduled to report quarterly results. Twitter shares are
sharply higher ahead of earnings, rising 3.9%.
Gogo Inc. (GOGO) shares slid 22% after AT&T Inc. (T)said
Monday it would launch in-flight, high-speed Internet service on
airlines, competing with the company. The slide triggered the
short-sale circuit breaker on the Nasdaq OMX exchange.
In overseas markets, European markets were higher after an
easing in geopolitical tensions between Russia and the West. Late
Monday, Moscow assured Washington that it won't invade Ukraine,
while reports said Russian troops had left the Ukrainian border and
returned to their base. Asia markets closed mixed.
In other financial markets, most metals (GCM4) declined, while
oil prices (CLM4) advanced.
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