By Anora Mahmudova and Sara Sjolin, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks turned higher Tuesday,
with the S&P 500 hitting an intraday record, after reports
emerged that Greece may ask for a six-month extension on its debt
obligations.
The newly elected Greek Prime Minister Alexis Tsipras will ask
for an extension on the country's loan agreement on Wednesday,
reported The Wall Street Journal, citing unnamed officials.
The S&P 500 (SPX) turned up, with five of its 10 main
sectors trading higher. Health-care and financial stocks led the
gains.
The Dow Jones Industrial Average (DJI) inched higher, leaving
half of its 30 members in the red. Microsoft and Cisco Systems led
losses, while the Nasdaq Composite Index (RIXF) was slightly
higher.
Peter Cardillo, chief market economist at Rockwell Global
Capital, noted that the S&P 500 hitting 2,100 is
remarkable.
"It was surprising to see earlier losses contained, given the
weakness in metal, the dollar and oil. This is part of a larger
trend of unwinding of safety trade over the past few days. Money
that is coming out of bonds is flowing into stocks, which is why we
are at record highs," Cardillo said.
The yield on 10-year Treasury note, which moves inversely to
prices, jumped 7 basis points to 2.14% on Tuesday.
Kate Warne, investment strategist at Edward Jones, said the
standoff between Greece and European commission had increased
uncertainty, resulting in the earlier pullback.
"Over the past week markets have been complacent about Greece
and the eventual agreement and any news that deviates from that
leads to negative reaction," Warne said.
Commenting on earnings season, Warne said corporations were able
to beat lowered-down expectations.
"Earnings were not stellar, but we still saw growth in profits.
So, that's a positive for stocks. And while a stronger dollar does
slow earnings growth for many companies, it does not stop or
decrease it, as companies are adapting to new reality," she
added.
Greece is still the focus: Negotiations between the Greek
government and eurozone finance ministers ended in a stalemate on
Monday, sending jitters around global markets. On Tuesday, news
reports emerged that Greece's new antiausterity government is ready
to request an extension to its loans but the terms were still
unclear. European ministers insist on keeping austerity measures as
part of the condition for the extension, while the Greek government
sees that as unpalatable.
Greece's current program expires at the end of February.
Read: These 5 charts explain the latest Greek drama
Data: Tuesday's economic data came in below expectations, but
the reaction seems to be mostly muted. The Empire State
manufacturing moved slightly lower but remained in positive
territory in February.
Meanwhile, a gauge of confidence among home builders fell in
February to a four-month low but continued to point to a higher
level of construction in the months ahead.
Earnings:Goodyear Tire & Rubber Co.(GT) posted a huge profit
jump, thanks to a one-time tax credit that offset currency
fluctuation and weaker sales in Europe. Shares jumped.
Starwood Hotels & Resorts Worldwide Inc.(HOT) said Chief
Executive Frits van Paasschen has resigned and will temporarily be
replaced by director Adam Aron. Shares rose sharply.
Cablevision Systems Corp. (CVC) was the top decliner amid
negative analyst comments, including a MoffettNathanson downgrade
to neutral from buy for big cable stocks that cited concerns such
as cord cutting, according to a report in the Hollywood
Reporter.
Follow more of the day's big stock moves here.
Other markets: European markets were mostly higher. In Asia,
most indexes closed higher, with the Shanghai Composite Index
extending its winning streak to seven sessions.
In commodity markets, prices fell across the board despite the
weaker dollar. The ICE dollar index (DXY) moved slightly lower.
Gold futures fell 1.6% to $1,207.90 an ounce, while oil (CLH5)
prices turned flat at $52.72 a barrel.
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