By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market rallied on
Tuesday, sending the S&P 500 to an intraday high, after reports
that Russian troops ended military exercises in the border
regions.
Indexes were on track to erase the previous day's losses after
the worst selloff in a month as tensions in Ukraine sent investors
to seek havens, such as gold and Treasurys.
The S&P 500 index (SPX) was up 20.97 points, or 1.1%, at
1,866.85, on track to score its 49th record close for the past
year. All 10 main sectors traded higher, with industrials and
health care leading gains.
The Dow Jones Industrial Average (DJI) added 186 points, or
1.2%, to 16,354.08, with 29 of 30 components gaining on
Tuesday.
The Nasdaq Composite (RIXF) jumped 57.48 points, or 1.4%, to
4,331.72.
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With no economic releases scheduled, geopolitical news is set to
dominate Tuesday's trading. Investors welcomed news that Russian
President Vladimir Putin ordered troops stationed on the border
with Ukraine back to base after the completion of military
exercises. International observers had become nervous over the
exercises in central and western Russia because they have been used
in the past as a cover for military action.
Meanwhile, U.S. Secretary of State John Kerry arrived in Kiev,
as the Obama administration pledged $1 billion in loan guarantees
to Ukraine along with technical support to the country's central
bank and finance ministry.
Only one Fed official was scheduled to speak today. Richmond Fed
President Jeffrey Lacker is due to speak in a one-on-one interview
on the economy in New York at 4:15 p.m. Eastern time.
Confirmation hearings for President Barack Obama's three Fed
nominees -- Stanley Fischer, Jerome Powell and Lael Brainard --
that had been expected Tuesday were postponed following government
closures on Monday due to a snowstorm.
Among individual stocks, AutoZone Inc. (AZO) shares rose 1.8%.
The company posted second-quarter earnings Tuesday that beat
expectations, with same-store sales rising 4.3% in the period.
Harsh weather conditions in the quarter "accelerated our growth in
certain failure-related hard-part categories while our deferrable
maintenance categories were challenged," said Bill Rhodes,
president and chief executive.
J.C. Penney Co. Inc. (JCP) shares rose 8.3%. Standard &
Poor's Ratings Services on Monday boosted its outlook on the
retailer to stable from negative. "The outlook revision reflects
our view that performance has begun to stabilize and we forecast
further modest gains over the next year," said S&P credit
analyst David Kuntz, according to The Wall Street Journal.
Tesla Motors Inc. (TSLA) shares rose 2.7%. The electric-car
company Tuesday announced expansion plans in Europe. Adam Jonas, an
analyst at Morgan Stanley, said Tuesday that Tesla could disrupt
the energy industry if its "gigafactory" can produce batteries at a
cost that is low enough. Morgan Stanley has an overweight rating
and a price target of $320 on Tesla shares. Shares have surged
nearly 67% this year through Monday's close.
RadioShack Corp. (RSH) tumbled 21% to $2.14 after the struggling
electronics retailer missed earnings estimates and said it would
close about a fifth of its stores. The company said lower store
traffic, intense discounting and operational issues were
responsible for the drop, but that the company's turnaround was
still moving forward.
As stocks rallied, gold and oil prices pulled back from highs
seen in the prior session. Gold for April delivery (GCJ4) fell $17
to $1,332.10, and West Texas Intermediate (CLJ4) crude fell 1.2%
and Brent crude prices fell 1.6%.
Asian shares had a mixed session, though Hong Kong's Hang Seng
Index , one of Asia's worst-hit markets on Monday, managed a gain
of 0.4%, and Toyko also rose. Beaten-down European stocks were also
on the rise, with the Stoxx Europe 600 index up 1.6%.
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