By Victor Reklaitis and Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks finished a choppy trading
session on Wednesday marginally higher, having pared most of the
gains following a better-than-expected report on new home
sales.
The S&P 500 index (SPX) has topped the 1,850 level in each
of the past three sessions, but again failed to hold above that
level into the bell. The benchmark index traded in and out of
positive territory in the last hour of trading and closed virtually
unchanged at 1,845.16.
The Dow Jones Industrial Average(DJI) ended the session 18.75
points, or 0.1%, higher at 16,198.41, with nearly two thirds of its
components ending higher. The Nasdaq Composite(RIXF) closed 4.48
points, or 0.1%, higher at 4,292.06.
Read the recap of our U.S. stock market live blog.
Earlier, stocks got a boost from a new-home sales report, which
showed a 9.6% increased in sales in January to a seasonally
adjusted annual rate of 468,000 above forecasts for 405,000.
The housing report was a "bit of good economic data" that's
"flying in the face" of recent weak economic reports that have been
blamed on bad weather, said Ryan Detrick, senior technical
strategist at Schaeffer's Investment Research.
He told MarketWatch that the week is somewhat light on
market-moving headlines, so traders are focused on the S&P 500
"continuing to pound on the 1,850 area." The index eventually will
break through, he said, noting that March and April historically
have been the S&P 500's two best months. In the last 20 years,
March and April on average have delivered returns of 1.52% and
2.19%, respectively, topping all other months, according to
Schaeffer's data.
On the other hand, Jonathan Krinsky, chief market technician at
MKM Partners, said he sees U.S. equities in a "stalemate" following
their move up from their lows in early February.
The past two weeks "have largely been a consolidation for U.S.
equities," Krinsky wrote in a note on Wednesday. "Looking
objectively at the Bull and Bear arguments, we see no clear edge
for the SPX in the near-term. This likely means more frustration
for both Bulls and Bears."
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,
while oil prices advanced, and the dollar rose against the euro and
the yen.
Among individual stocks, Target Corp. (TGT) jumped 7% as
investors cheered its fourth-quarter report, while rival Wal-Mart
(WMT) rose 2% amid news that its Sam's Club business was testing an
online subscription service as the threat from Amazon.com Inc.
(AMZN) grows.
Lowe's Companies (LOW) shares rallied 5.2% after No. 2
home-improvement retailer announced a gain in fourth-quarter profit
and additional share buybacks.
Newfield Exploration Company (NFX) shares jumped 7.3% after the
company's fourth-quarter results beat estimates.
Shares in J.C. Penney (JCP) rose 4% in aftermarket following the
retailer's quarterly results. The company swung into profit in the
fourth quarter and an adjusted loss was less than expected.
On the downside, First Solar Inc. (FSLR) dropped 9.1% 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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