By Anora Mahmudova and Sara Sjolin, MarketWatch
J.P. Morgan climbs after earnings beat views
NEW YORK (MarketWatch)--U.S. stocks ended Tuesday's session
slightly higher as gains in the energy sector lifted the benchmark
S&P 500 index.
The top ten performers on the S&P 500 were energy shares,
with each rising more than 2% following a jump in oil prices.
Investors brushed off weaker-than-expected economic data and mixed
earnings reports.
Notably, monthly retail sales rebounded in March, but by less
than expected.
The less-than-stellar economic reports come as earnings reports
from large banks and retailers provided a mixed backdrop. J.P.
Morgan's results--the first major earnings report of the day--beat
forecasts and sent the bank's shares higher, while Wells Fargo
delivered a rare decline in profits.
The S&P 500 (SPX) closed 3.41 points, or 0.2%, higher at
2,095.83. Energy stocks rallied, while technology shares lagged
behind.
The Dow Jones Industrial Average (DJI) added 59.66 points, or
0.3%, to 18,036.70, with nearly two-thirds of its 30 components
finishing with gains.
Meanwhile, the Nasdaq Composite (RIXF) underperformed other
indexes and closed 10 points, or 0.2%, lower at 4,977.29.
Brad McMillan, chief investment officer at Commonwealth
Financial Network, in emailed notes wrote that Tuesday's retail
sales, despite missing expectations, actually show marked
improvement.
"This is another example of a snowdown, not a slowdown, and that
bad weather and some other onetime factors have combined to
temporarily slow down the economy," wrote McMillan, adding that he
expects consumers to increase spending in coming months.
Phil Orlando, chief equity strategist and portfolio manager at
Federated Investors, isn't expecting outstanding earnings, but he
said they probably won't be disastrous either.
"We would not be surprised to see a mild pullback due to weak
earnings," Orlando said.
"But markets can also trade sideways for a while and correct on
time basis rather than on prices," he said.
Earnings: Banking giant J.P. Morgan Chase & Co. (JPM)
reported rises in first-quarter profit and revenue that topped
analyst forecasts, lifting the shares 1.6%.
Wells Fargo & Co.(WFC) reported that its first-quarter
profit fell, the first such drop in 18 quarters. Shares fell
0.7%.
The two companies kick off earnings season for large U.S. banks,
with Bank of America Corp. (BAC), Citigroup Inc. (C) and Goldman
Sachs Group Inc. (GS) reporting later in the week.
Chevron Corp.(CVX) rose 2.2%, and was the top gainer on the
Dow.
For more on today's notable movers read Movers & Shakers
column
(http://www.marketwatch.com/story/intel-jp-morgan-wells-fargo-earnings-in-focus-2015-04-14).
Data:Sales at U.S. retailers
(http://www.marketwatch.com/story/retail-sales-rebound-09-in-march-after-three-straight-declines-2015-04-14)
rose in March by the largest amount in a year, rebounding after
three straight monthly declines. However, the rebound was weaker
than expected.
U.S. producer prices
(http://www.marketwatch.com/story/march-producer-prices-rise-02-first-gain-since-october-2015-04-14)
rose a seasonally adjusted 0.2% in March after four straight
monthly declines, the Labor Department said Tuesday.
The NFIB small-business index for March fell to its lowest
reading
(http://www.marketwatch.com/story/small-business-optimism-slumps-to-nine-month-low-nfib-2015-04-14)
in nine months. U.S. February business inventories ticked up
0.3%.
Other markets: Asian markets closed mixed
(http://www.marketwatch.com/storyno-meta-for-guid), while European
stocks ended lower
(http://www.marketwatch.com/storyno-meta-for-guid) almost across
the board as investors remained concerned about Greece's bailout
program.
Oil prices
(http://www.marketwatch.com/story/oil-prices-keep-gaining-on-hopes-us-shale-supply-has-peaked-2015-04-14)(CLK5)
rose and settled at the highest level in a week, up 2.7%, to $53.29
a barrel. Gold futures
(http://www.marketwatch.com/story/gold-futures-lower-on-rate-hike-expectations-2015-04-14)(GCM5)
settled 0.6% lower at $1,192.60. The dollar (DXY) fell against
major rivals after weaker-than-expected retail sales.
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