MCO Moodys Corp

By Ellie Ismailidou and Barbara Kollmeyer, MarketWatch

Dollar briefly hits seven-month high

U.S. stocks gave up earlier gains to end little changed Tuesday, as falling oil prices overshadowed strong earnings from giant retailers Wal-Mart Stores and Home Depot Inc.

The evacuation of a soccer stadium in Germany also rekindled terror fears, unnerving investors.

Stock prices moved lower in the afternoon after news came out that a stadium hosting a soccer game between Germany and the Netherlands was evacuated (http://www.marketwatch.com/story/stadium-hosting-germany-netherlands-soccer-game-evacuated-reports-say-2015-11-17) four days after terrorist attacks in Paris, rocked the city and left scores of people dead or injured.

The geopolitical worries put pressure on stocks late in the afternoon in New York, with the Dow Jones Industrial Average finishing 6.49 points, or less than 0.1%, higher at 17,489.50, after earlier trading as high as 17,599.

The S&P 500 index turned negative, closing off 2.75 points, or 0.1%, at 2,050.44. Putting pressure on the S&P 500 was a 1.2% fall in the energy sector, which was the worst performer of the S&P 500's 10 main sectors. Shares of Chesapeake Energy Corp. (CHK), off 7.4%, and Cabot Oil & Gas Corp. (COG), closing 6.9% down, headlined the S&P 500's worst performers.

Meanwhile, the Nasdaq Composite Index picked up 1.4 points to finish barely changed at 4,986.01.

Mike Antonelli, equity sales trader at R.W Baird & Co., said the environment for assets perceived as risky is becoming unstable. He said the geopolitical risk and a drop in crude prices are combining to create a "cocktail that's being brewed for risk assets" that "is pretty sour."

Earlier in the session upbeat earnings reports from giant retailers Home Depot Inc. and Wal-Mart Stores Inc., which together contributed around 50 points to the Dow industrials, delivered a fillip to stocks.

On the economic front, an October reading of the U.S. consumer-price index, which showed the first increase in three months, a seasonally adjusted 0.2% rise (http://www.marketwatch.com/story/consumer-price-index-rises-in-october-for-first-time-in-3-months-2015-11-17), fell within economists' expectations. Core prices, which exclude energy and food, rose 1.9% year-over-year.

"Today's figures are very unlikely to derail a hike in December," said Luke Bartholomew, investment manager at Aberdeen Asset Management, in a Tuesday research note.

"It's a pretty finely balanced judgment though. Hiking with limited evidence of inflation risks slowing the economy down too much. While hiking only when inflation has bounced back risks not being able to contain it," Bartholomew said.

Meanwhile, industrial production fell 0.2% in October, pulled down mainly by a 2.5% decline in utilities and a 1.5% fall in mining. On the positive side, the manufacturing sector showed some improvement in October, (http://www.marketwatch.com/story/signs-of-life-for-manufacturing-in-industrial-production-report-2015-11-17) advancing 0.4% after two straight monthly declines.

Tuesday's price action left the market deflated after Monday's broad rally, as investors were still shaking off the pessimism from the Paris terror attacks.

Read: Why stocks are taking their cues from crude-oil prices (http://www.marketwatch.com/story/why-stocks-are-taking-their-cues-from-crude-oil-prices-2015-11-16)

In other economic data: The National Association of Home Builders sentiment index retreated from a 10-year high in November, dipping three points from an earlier reading of 65 (http://www.marketwatch.com/story/home-builer-sentiment-retreats-in-november-2015-11-17). Any reading over 50 signals improvement.

Investors are now bracing for the release of minutes on Wednesday from an October meeting of Fed policy makers. The minutes could push stocks lower if policy makers appear comfortable with the notion of raising interest rates in December.

Stocks to watch: Airgas, Inc. (ARG) shares surged 30% after Air Liquide SA agreed to a purchase in a deal valued at $13.4 billion.

Wal-Mart Stores, Inc. (WMT) shares climbed 3.5% after the general retailer's fiscal third-quarter profit declined less than expected (http://www.marketwatch.com/story/wal-marts-stock-surges-after-profit-beats-expectations-2015-11-17), helping offset a slight miss in revenue of $117.41 billion.

Apparel and accessories retailer TJX Cos. (TJX) shares surged 3.9% after the company reported better-than-expected third-quarter profit and sales (http://www.marketwatch.com/story/tjxs-stock-surges-after-profit-sales-beat-expectations-2015-11-17).

Home Depot Inc.(HD) shares rose 4.4% after the D.I.Y. retailer backed the high-end of its previous forecast for the year (http://www.marketwatch.com/story/home-depot-reports-solid-sales-growth-2015-11-17-6485274).

Moody's Corp.(MCO) shares jumped 3.2% Tuesday afternoon following a stock rating upgrade by UBS (http://www.marketwatch.com/story/moodys-shares-rally-on-ubs-upgrade-to-buy-2015-11-17).

(http://www.marketwatch.com/story/moodys-shares-rally-on-ubs-upgrade-to-buy-2015-11-17)Meanwhile, regulatory filings revealed several big hedge-fund managers' positions in stocks in the third quarter. David Einhorn (http://www.marketwatch.com/story/hedge-fund-titan-einhorn-boosts-apple-stake-slashes-sunedison-2015-11-16) boosted his stake in Apple Inc.(AAPL), General Motors Inc.(GM) and Michael Kors Holdings Ltd.(KORS). He cut holdings of SunEdison Inc.(SUNE) and Micron Technology Inc.(MU).

Billionaire investor Carl Icahn (http://www.marketwatch.com/story/icahn-reports-stakes-in-paypal-freeport-aig-2015-11-16) revealed stakes in PayPal Holdings Inc.(PYPL) and Freeport-McMoRan Inc. (FCX).

Other markets: Asian stocks closed mostly higher, though the Shanghai Composite Index gave up gains by the finish and ended flat. European stocks (http://www.marketwatch.com/story/european-stocks-leap-toward-best-session-in-nearly-a-month-2015-11-17) finished sharply higher, marking their biggest gains in about six weeks as defense and energy shares climbed.

The dollar (http://www.marketwatch.com/story/dollar-hits-fresh-7-month-high-against-the-euro-2015-11-17) briefly hit a seven-month high against the euro (http://www.marketwatch.com/story/dollar-hits-fresh-7-month-high-against-the-euro-2015-11-17) as traders bet Friday's terrorist attacks in Paris may push the European Central Bank to loosen up on monetary policy when it meets Dec. 3, which would open up the euro to selling pressure. Read: Paris attacks may hit eurozone economy (http://www.marketwatch.com/story/paris-attack-may-hit-eurozone-economy-ecbs-praet-2015-11-17)

Gold prices fell to their lowest level in more than five years, as demand for risky assets, such as stocks, dulled interest in the metal. Crude-oil futures settled with a loss Tuesday (http://www.marketwatch.com/story/oil-prices-gain-as-markets-weigh-pressures-on-supply-2015-11-17).

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(END) Dow Jones Newswires

November 17, 2015 17:13 ET (22:13 GMT)

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