By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks on Wednesday wavered
between gains and losses, but the Dow Jones Industrial Average
remained on track to close at a record high for a second
session.
The blue-chip index retained modest gains as the S&P 500 and
the Nasdaq Composite meandered on either side of neutral.
Data showed a welcome rise in private-sector payrolls in
February, a less-than-expected drop in U.S. factory orders the
month before and evidence of slowing retail sales from the Federal
Reserve's Beige Book.
"I am getting worried about a temporary growth scare coming up,"
said Nick Raich, CEO of the Earnings Scout, an independent
microeconomic research firm specializing in corporate earnings
trends in Cleveland, Ohio.
A day after closing at an all-time high, the Dow Jones
Industrial Average (DJI) furthered its gains, rising as much as 66
points and lately up 27.91 points, or 0.2%, to 14,281.68. Read a
commentary piece by the Charles Schwab CEO on whether it's time to
get into the market or get out.
Telecommunications and utilities led sector declines and
materials and financials led the gains among the 10 major industry
groups on the S&P 500 index, which added 1.15 point to
1,540.94, leaving it 24 points shy of its record-high finish hit in
October 2007. Read a story on the VIX's track record as a
contrarian indicator.
"We're approaching all-time highs because we're at all-time
levels of profit," said Raich. "Earnings growth for the S&P 500
(SPX) reaccelerated form the third to fourth quarter, but there is
going to be a temporary slowdown in first quarter," he added.
The Nasdaq Composite (RIXF) declined 3.41 points, or 0.1%, to
3,220.75.
Advancers edged just ahead of decliners on the New York Stock
Exchange, where 377 million shares traded as of 2:20 p.m. Eastern.
Composite volume neared 2.4 billion.
Ahead of the open, stock-index futures extended gains after
Automatic Data Processing Inc. reported private-sector jobs rose by
198,000 last month, exceeding expectations. The January jobs data
were revised higher. See: Private-sector jobs growth beats
expectations.
"It all looks good; the numbers are showing roughly 200,000 now
for the last two months," said Raich.
Other Wednesday data had the government reporting orders for
U.S. factory goods in January declined by the most in five months,
hit by weak appetite for military hardware and commercial
aircraft.
Among individual stock movers, Staples Inc. (SPLS) slid 7.3%
after the office-supplies retailer projected profit beneath
estimates.
VeriFone Systems Inc. (PAY) added 9.1% after the manufacturer of
credit-card terminals reported earnings that topped
expectations.
Shares of Best Buy Co. (BBY) rose 3.2% after Jefferies Group
Inc. hiked its view on the retailer to buy from hold.
On Tuesday, the Dow industrials surpassed their closing high
reached on Oct. 9, 2007, just ahead of the global financial
meltdown. The index rallied 125.95 points, or 0.9%, to finish at
14,253.77, sailing past its all-time intraday high of 14,198.10 set
on Oct. 11, 2007. See: U.S. stock rally lifts Dow to record
finish
In the commodity markets on Wednesday, oil for April delivery
(CLJ3) fell 37 cents to $90.45 a barrel on the New York Mercantile
Exchange.
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