By Anora Mahmudova and Sara Sjolin, MarketWatch
S&P closes above 2,100
NEW YORK (MarketWatch) -- The S&P 500 eked out a small gain
Tuesday to close at a record level for the second time this year,
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.
The S&P 500 (SPX) started the session lower and steadily
rose, adding 3.35 points, or 0.2%, to 2,100.34. The benchmark index
recorded gains for the third consecutive session. Health-care and
financial stocks led the gains. Despite the record levels,
investors remained jittery. Implied volatility as measured by the
CBOE Vix (VIX) rose 8% to 15.79.
The Dow Jones Industrial Average (DJI) ended less than 10 points
from its record close, adding 28.23 points, or 0.2%, to
18,047.58.
The Nasdaq Composite Index (RIXF) finished the day up 5.43
points, or 0.1%, to 4,899.27.
Peter Cardillo, chief market economist at Rockwell Global
Capital, noted that the S&P 500 hitting 2,100 is a remarkable
accomplishment.
"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 8 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 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 rose 2.7%.
Starwood Hotels & Resorts Worldwide Inc.(HOT) said Chief
Executive Frits van Paasschen has resigned and will temporarily be
replaced by director Adam Aron. Shares gained 2.7%
Cablevision Systems Corp. (CVC) was the top decliner, falling
4.1% 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 recouped earlier losses and
finished slightly 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 lower, down 0.4% to
94.04. Gold futures fell 1.5% to $1,208.20 an ounce, while oil
prices (CLH5) rebounded and settled at $53.53 a barrel, to tally a
gain of more than 9% over the past three trading sessions.
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