By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
Pre-earnings season jitters set in
NEW YORK (MarketWatch) -- U.S. stocks edged lower on Tuesday,
giving up some of the solid gains booked during the previous two
sessions.
The main benchmarks looked set to end the month lower, but were
still on track to book modest quarterly gains.
Analysts said investors reassessed their investments ahead of
what's feared to be a disappointing stretch for corporate quarterly
results.
"Investors are anxiously awaiting earnings reports over the next
few week, hoping they are not as bad as feared. With markets
trading near recent highs, a lot is at stake," said Eric Wiegand,
senior portfolio manager at U.S. Bank Wealth Management.
The S&P 500 (SPX) dropped nine points, or 0.4%, to 2,077.
The benchmark index is set to end the first quarter up 0.9%, which
would mark its ninth-straight winning quarter.
The Dow Jones Industrial Average (DJI) sank 92 points, or 0.5%,
to 17,884. Among the blue chips, 26 of the 30 components were
trading lower. The Dow is set to finish the quarter marginally
higher.
The Nasdaq Composite (RIXF) fell 20 points, or 0.4%, to 4,927.
The tech-heavy index is set to log a nearly 4% gain in the quarter,
the longest quarterly winning streak in its history.
Need to Know: Don't be the 6-foot-tall man about to drown in
this market
(http://www.marketwatch.com/story/dont-be-the-6-foot-tall-man-about-to-drown-in-this-market-2015-03-31)
Commenting on the performance of stocks over the past three
months, Tom Wright, director of equities at JMP Securities, said
the fact that each selloff was met with a rebound indicates that
underpinnings of the market are still intact.
Wright noted that impending rates hikes will be stimulative to
the stock market. "When companies realize that money will be
expensive, they will want to use available cash to buy smaller
firms. Ultimately, a shrinking supply will keep prices of stocks
higher," Write said.
Home prices and lots of Fedspeak: U.S. house prices were steady
in January, according to the S&P/Case-Shiller 20-city composite
released Tuesday.
The Chicago business barometer -- also known as the Chicago PMI
-- rose in March, but was still well below the key 50 level, which
would signal that businesses are contracting.
Meanwhile, consumer confidence index jumped to 101.3 in March
from 98.8 in February.
Among today's Fed speakers, Richmond Fed Jeffrey Lacker said he
expects solid growth and rising inflation this year
(http://www.marketwatch.com/story/feds-lacker-sees-strong-case-for-june-rate-hike-2015-03-31),
and as a result, would urge the U.S. central bank to start raising
interest rates relatively soon.
Stocks to watch:IBM Corp. (IBM) said Tuesday it plans to invest
$3 billion in a new "Internet of Things" business that will help
customers gather and analyze data from sensor-equipped devices and
smartphones. Shares fell 1%.
CBRE Group Inc.(CBG) said it would buy Johnson Controls Inc.
(JCI) workplace solutions business in a deal worth $1.475 billion.
CBRE shares jumped 5.7%.
U.S. cable TV operator Cablevision Systems Corp.(CVC) is eyeing
a deal to buy the New York Daily News that would value the
newspaper at $1, Reuters reported, citing sources.
For more on notable movers, read Movers & Shakers column
(http://www.marketwatch.com/story/movado-saic-conns-earnings-in-focus-2015-03-31).
Other markets: European stocks retreated after data showed
eurozone unemployment was still above expectations at 11.3% in
February, after upward revisions to prior months. Reports
(http://www.marketwatch.com/story/greek-bailout-revision-talks-end-without-deal-report-2015-03-31)
that Greek bailout-revision talks ended without a deal also didn't
help sentiment for Europe stocks.
Asian stocks
(http://www.marketwatch.com/story/asian-stocks-end-mixed-after-previous-china-led-rally-2015-03-31)
closed on a mixed note, but the quarter produced double-digit wins
for the Nikkei 225 index and the Shanghai Composite Index .
The dollar (EURUSD) rose notably against the euro on Monday as
investors waited for U.S. economic reports later in the week.
Oil prices
(http://www.marketwatch.com/story/oil-prices-fall-as-iran-nuclear-talks-approach-deadline-2015-03-31)(CLK5)
fell as talks over Iran's nuclear talks
(http://www.marketwatch.com/story/iran-deal-put-at-risk-by-uncertainty-over-khamenei-2015-03-31)
neared a deadline and dollar strength weighed. Gold
(http://www.marketwatch.com/story/gold-weakens-for-third-straight-session-2015-03-31)(GCJ5)
prices inched higher.
Read: Oil could fall below $30 a barrel, but here's why that is
a good thing
(http://www.marketwatch.com/story/oil-could-fall-below-30-a-barrel-but-heres-why-thats-a-good-thing-2015-03-30)
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