By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks drifted lower in early
trade Tuesday, as markets searched for direction in a session light
on economic news. Urban Outfitters slumped after disappointing
earnings, while Macy's rallied after an upgrade from analysts.
The S&P 500 (SPX) fell 3 points, or 0.2%, to 1,874.08. The
benchmark index struggled to hold on to the opening gains, which
topped the previous closing record.
The Dow Jones Industrial Average (DJI) dropped 28 points, or
0.2%, to 16,391.26.
The Nasdaq Composite (RIXF) was barely changed at 4,334.92.
Follow our stock market coverage on live blog.
Tuesday's economic data included small-business sentiment, which
slumped in February. According to the National Federation of
Independent Business, its small-business index dropped by more than
expected, on concerns over sales, the economy and employment
driving the downturn.
Job openings rose in January in line with expectations. There
were 3.97 million openings compared with 3.91 million in
December.
Ian Shepherdson, chief economist at Pantheon Macroeconomics,
wrote that the small-business report was "bad, but the weather and
the January drop in stock prices explain the hit; expect a March
rebound".
Retailers were in the spotlight. Shares of American Eagle
Outfitters Inc. (AEO) tumbled 5.9% after fourth-quarter profit and
outlook disappointed.
Shares of Urban Outfitters Inc. (URBN) fell 5.3% after the
company reported results on Monday that revealed a drop in
fourth-quarter same-store sales late Monday.
Shares of Dick's Sporting Goods Inc. (DKS) rose 1% after the
company posted results that largely met forecasts.
Shares of Macy's (M) and J.C. Penney rose after upgrades from
analysts.
J.C. Penney Co. (JCP) shares jumped 8.7% after the retailer was
upgraded to buy from neutral by Citigroup. Analyst Oliver Chen
expects that the company's "going back to basics" strategy will
spur positive comparable sales in line with the retailer's
outlook.
Macy's rose 2.5% after analysts at Wells Fargo raised the stock
to outperform from market-perform.
Shares of La Jolla Pharma Co. (LJPCD) soared 73%, tracking a
rally late Monday after the microcap biotech said its study for a
chronic kidney disease treatment showed a statistically significant
improvement.
Fuel Tech Inc. (FTEK) shares sank 19% after the
air-pollution-control technology company's results fell short of
Wall Street expectations late Monday.
In other markets, Asia stocks managed flat-to-positive closes
after Monday's mauling, with the China Shanghai Composite Index
closing up 0.1%. European stocks wavered as banks fell. Copper
prices (HGK4), hit particularly hard by that downbeat Chinese
export data on Monday, managed a gain of 1 cent.
Oil prices managed to perk up after Monday's rout, while gold
prices were also higher.
More must-reads from MarketWatch:
Celebrating bulls lose sight of bearish picture
Five reasons why stocks will fall
Are you ready for deflation?
Subscribe to WSJ: http://online.wsj.com?mod=djnwires