By Victor Reklaitis, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks edged up Wednesday,
bouncing back from early losses after a better-than-expected
reading on new-home sales.
Chart watchers kept an eye again on the S&P 500 index (SPX)
as it traded near its Jan. 15 record close of 1,848.38. The
benchmark index topped that level intraday on Monday and Tuesday
but couldn't close above it.
The S&P 500 was last up 2 points, or 0.1%, to 1,847, while
the Dow Jones Industrial Average(DJI) gained 27 points, or 0.2%, to
16,207. The Nasdaq Composite(RIXF) tacked on 12 points, or 0.3%, to
4,299.
The S&P 500 and Dow both opened higher, then slumped into
negative territory before rallying on the home-sales report. Sales
of new single-family homes started 2014 with surprising strength,
rising 9.6% in January to a seasonally adjusted annual rate of
468,000, above forecasts for 405,000.
Still, Jonathan Sudaria, dealer at London Capital Group, has
said that after flat finishes in the U.S. and a mixed Asia session,
it is clear traders are feeling some trepidation.
Follow the U.S. stock market live blog.
"Where we go from here is anyone's guess, and traders will be
looking for cues before embarking on the next leg. But with all the
bearish flash points in the world at the moment -- let alone the
hidden black swan events that no one is talking about yet --
traders are well aware that a downward move is equally likely if
not more," Sudaria said in a note before the home-sales report.
On the other hand, Kevin Marder, a MarketWatch columnist, said
there is evidence of robust speculative sentiment. (Read more: The
case for the bears weakens
http://www.marketwatch.com/story/the-case-for-the-bears-weakens-2014-02-25.)
In other U.S. economic news, Boston Fed President Eric Rosengren
will speak on the economic outlook to the Boston Economic Club at
noon. At 7:30 p.m, Cleveland Fed President Sandra Pianalto
discusses her 35 years at the Fed in a speech at the College of
Wooster.
In other markets, it was a choppy day in Asia, with the Nikkei
225 closing down 0.5% and the Hong Kong Hang Seng index gaining
0.5%. European stocks were in the red with the Stoxx 600 pulling
back from a six-year high reached in the prior session. Gold fell
slightly, while oil prices inched up, and the dollar rose against
the euro and the yen.
Among individual stocks, Target Corp. (TGT) jumped 4% as
investors cheered its fourth-quarter report, while TJX Cos. (TJX)
added 1% after its quarterly results.
On the downside, First Solar Inc. (FSLR) dropped 9% after the
company reported quarterly earnings late Tuesday that fell well
short of Wall Street forecasts. (Read more: Movers & Shakers
http://www.marketwatch.com/column/movers%20%26%20shakers?link=MW_Nav_MA.)
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