By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks built on gains on Tuesday,
sending the benchmark S&P 500 and Dow Jones Industrial Average
to intraday highs, as investors appeared to shrug off soft retail
sales numbers in April.
While the headline number on April retail sales was below
forecasts, details were more positive. March sales were increased
to the largest gain in four years.
The S&P 500 (SPX) added 2.3 points, or 0.1%, to 1,899.02.
The index surpassed 1,900 for the first time at session highs.
The Dow Jones Industrial Average (DJI) rose 27 points, or 0.2%,
to 16,717.59, also setting an intraday high in early trade.
The Nasdaq Composite (RIXF) wobbled in early trade and was last
trading 2 points, or 0.1%, higher at 4,139.36. The tech-heavy index
rallied 1.8% on Monday, driven by gain in momentum plays.
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Investors had several economic reports to asses on Tuesday. The
most important among them was retail sales, which were softer than
expected. American consumers barely increased spending at retail
stores in April after splurging in March following a brutally cold
winter. Sales at retailers rose a scant 0.1% in April, the Commerce
Department said Tuesday.
Ian Shepherdson, chief economist at Pantheon Macroeconomics,
wrote that a late Easter this year boosted core sales in March and
depressed them in April.
Inventories at U.S. businesses rose 0.4% in March, slightly
below forecasts, the Commerce Department said Tuesday.
The prices paid for imported goods fell a seasonally adjusted
0.4% in April after a revised 0.4% gain in March, the U.S. Labor
Department said Tuesday.
Separately, small-business sentiment in May rose to the highest
level in more than six years, the National Federation of
Independent Business said Tuesday.
Keurig jumps, Elizabeth Arden plummets on earnings miss
In corporate news, shares of coffee-machine maker Keurig Green
Mountain Inc. (GMCR) jumped 9.5% after an SEC filing showed that
Coca-Cola Co. (KO) increased its stake in Keurig to 16% from
10%.
DirecTV (DTV) shares rose 1.8% after The Wall Street Journal
reported that the communications firm could be bought by AT&T
(T) within the next two weeks.
Shares of Rackspace Holding Inc. (RAX) jumped 11% after the
company beat first-quarter earnings forecasts.
Shares of McKesson Corp. (MCK) added 2.6% after the
pharmaceutical distributor posted better-than-expected adjusted
earnings for the fourth quarter.
Elizabeth Arden Inc. (RDEN) plummeted 18% after the
beauty-products company reported weaker-than-expected results.
China, German data disappoint
In overseas markets, the Shanghai Composite Index eased 0.1%
after data were released showing China's industrial production
slowed to 8.7% in April from a year earlier, compared with 8.8% in
March. Retail-sales growth also fell, to 11.9% from 12.2% in March.
Both sets of data slightly missed forecasts. (Read more in the
Asian Stocks recap blog
http://blogs.marketwatch.com/thetell/2014/05/12/asia-stocks-live-blog-rallying-into-china-data/?link=instory.)
European stocks hovered at 6-year highs, but pared gains after
data showed investor confidence in Germany fell for a fifth
straight month in May, to reach the lowest level in more than a
year. The ZEW expectations index dropped to 33.1, from 43.2 in
April, falling short of forecasts.
Across other markets, crude-oil futures for June delivery (CLM4)
jumped, while gold for June delivery (GCK4) rose slightly. The ICE
dollar index (DXY) was slightly higher at 80.03.
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