By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market rallied on
Tuesday, sending the S&P 500 to an intraday record, after
reports that Russian troops ended military exercises in the border
regions with Ukraine suggested an easing of tensions there.
Indexes were on track to erase Monday's losses, the biggest
selloff in a month.
The S&P 500 index (SPX) was up 25.17 points, or 1.3%, at
1,870.81, on track to score its 49th record close for the past
year. All 10 main sectors traded higher, with industrials and
financials leading gains. The benchmark index has gained more than
1% so far this year.
The Dow Jones Industrial Average (DJI) added 213 points, or
1.3%, to 16,3812.08, with all 30 components in the green. The
Nasdaq Composite (RIXF) jumped 68.48 points, or 1.6%, to
4,342.72.
The Russell 2000 index was up 2.7% to 1,208.17, an intraday
all-time high. The index of small-cap stocks is on track to close
at a new record.
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"The events such as yesterday trigger corrections in markets and
not bear markets," said Steven Krawick, chief investment officer at
West Chester Capital Advisors. "Economic conditions are still
favorable, the Fed is committed to keeping the rates low and while
we consider valuations as high, they are not at extreme levels.
With these underpinnings, selloffs such as yesterday are temporary
and provide an opportunity to buy."
With no economic reports 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, President Barack Obama said a Putin press conference
earlier Tuesday was just a smokescreen to justify an illegal
invasion.
Richmond Fed President Jeffrey Lacker is due to take part in a
one-on-one discussion on the economy in New York at 4:15 p.m.
Eastern time
Among individual stocks, Delta Air Lines Inc. (DAL) climbed 5.9
% after the airline on Tuesday said its consolidated passenger unit
revenue in February increased 4% year over year on strong domestic
demand.
Lorillard Inc. (LO) rose 2.3% in the wake of a Financial Times
report that Reynolds American Inc. (RAI), maker of Camel brand
cigarettes, is exploring a possible buyout of Lorillard in a deal
that could value Lorillard at more than $20 billion. Shares of
Reynolds were up 3.6%.
Shares of Oxygen Biotherapeutics Inc. (OXBT) surged 24% after
the pharmaceutical company said Tuesday the U.S. Food and Drug
Administration has allowed it to go ahead with testing of its
Oxycyte treatment, which had been on clinical hold.
Plug Power Inc. (PLUGD) shares leapt 13% after analysts at Cowen
and Co. raised their price target on the firm on Monday.
J.C. Penney Co. Inc. (JCP) shares jumped 5% after Standard &
Poor's Ratings Services on Monday boosted its outlook on the
retailer to stable from negative.
Tesla Motors Inc. (TSLA) shares rose 1.5%. 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 17% to $2.25 after the struggling
electronics retailer missed earnings estimates and said it would
close about a fifth of its stores.
As stocks rallied, gold and oil prices pulled back from highs
seen on Monday. Gold for April delivery (GCJ4) fell $12 to
$1,337.10, and West Texas Intermediate (CLJ4) crude fell 1.5% and
Brent crude prices fell 1.7%.
Asian shares had a mixed session, though Hong Kong's Hang Seng
Index , one of Asia's worst-hit markets on Monday, added 0.7%, and
Toyko shares also rose. Beaten-down European stocks rebounded; the
Stoxx Europe 600 index jumped 2.1%.
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