By Anora Mahmudova and Barbara Kollmeyer, MarketWatch Oil, gold
give up gains
NEW YORK (MarketWatch) -- U.S. stocks moved higher on Tuesday
buoyed by a better-than-expected reading of U.S. construction data
for October.
However, energy stocks were under pressure, tracking oil prices
closely, while the technology sector was dragged down by a second
day of losses in Apple Inc. shares.
The S&P 500 (SPX), the Dow Jones Industrials Average (DJI)
and the Nasdaq Composite (RIXF) were edging up.
Economic data: Construction spending data, released Tuesday
morning, were up by 1.1% in October to seasonally adjusted annual
rate of $971 million, reported the U.S. Commerce Department Tuesday
at 10 a.m. Bigger data come Friday with the highly anticipated
jobless data.
Meanwhile, Stanley Fisher, vice chairman of the Federal Reserve,
speaking at The Wall Street Journal CEO Council annual meeting in
Washington, D.C., said continued labor market improvement and just
"some signs" that inflation is beginning to stir would be enough
for the U.S. central bank to lift-off interest rates. If inflation
continues to move lower, then the Fed will have to take that into
account, Fischer said.
Commodities volatile: Oil and precious metals were giving up
gains earned in the prior session. After more than 4% rebound for
oil prices on Monday, January crude prices(CLF5) were down more
than 2%. Opinion: OPEC cannot outlast the U.S. on oil prices
Gold prices also gave back some of Monday's rally, with February
futures(GCG5) off 1.9% and the precious metal falling below $1,200
an ounce level. What silver's biggest move in two years means
Investment banks continued to roll out their predictions for
2015. Citigroup is forecasting the S&P 500 will return 8.5% by
the end of 2015, for a level of 2,200, and sees outperformance for
Japan and emerging-market stocks. That prediction is in line with
that of Dan Greenhaus, strategist at BTIG, who said the main reason
for his own muted expectations is the fact that the first rate hike
by the Federal Reserve -- expected next year -- will be taken badly
by stocks. Fed to stay aggressive in 2015 as it battles
'lowflation'
Stocks in focus:General Motors Co.(GM.XX) shares rose after the
car maker reported a 6.5% rise in sales in last month, the best
November sales figures in several years. Ford Motor Co.(F) shares
fell following a report that sales in November fell 2%.
Shares of Royal Caribbean Cruises Ltd.(RCL) jumped after being
added to the S&P 500.
Avanir Pharmaceuticals Inc.(AVNR) soared after the company said
it will be acquired by Japan's Otsuka Pharmaceutical Co. in a $3.5
billion deal, which will pay $17 per share for Avanir.
Shares of Cypress Semiconductor Corp.(CY) Spansion Inc.(CODE)
surged after the companies announced a $4 billion stock merger late
Monday. See Movers & Shakers column
Overseas markets: The FTSE 100 index was eyeing its first win in
four days as oil and mining stocks rebounded from Monday's trade.
Energy stocks were also driving gains for Europe , and rally action
was also seen across Asia. The Shanghai Composite rallied 3%, led
by brokerages and banks. The People's Bank of China held back from
draining funds from the banking system on Tuesday, which analysts
said has triggered speculation that a cut in reserve requirements
could come soon.
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