By Saumya Vaishampayan And Corrie Driebusch
U.S. stocks gained on Tuesday, putting them on track to push the
Dow industrials further into positive territory for the year.
The Dow Jones Industrial Average rose 84 points, or 0.5%, to
17965. The S&P 500 added 7.3 points, or 0.4%, to 2088 and the
Nasdaq Composite gained 19 points, or 0.4%, to 4937.
Investors say market attention has turned to corporate results.
First-quarter earnings are expected to decline due to a stronger
dollar and its effect on profits at large multinational companies
and weaker commodity prices and their impact on energy companies.
In all, analysts expect earnings at S&P 500 companies to fall
4.9% from a year earlier, according to FactSet.
Earnings season unofficially begins this week when Alcoa Inc.
reports results after the stock market closes Wednesday.
On Tuesday, European stocks advanced in their first day of trade
after the Easter holiday weekend. France's CAC 40 gained 1.5% and
Germany's DAX rose 1.1%. Investors were cheered by upbeat data on
private-sector activity, which expanded at the fastest pace in 11
months, even after slight downward revisions to initial
estimates.
Asian stocks rose, with Japan's Nikkei Stock Average gaining
1.3% and the Shanghai Composite Index advancing 2.5%.
The gains followed Monday's rise in U.S. stocks as investors
shrugged off the disappointing employment report for March. The Dow
rose 0.7% to 17880.85, pushing higher for 2015. The S&P added
0.7% to 2080.62.
Friday's weak employment report, which showed the economy added
126,000 jobs last month, has heightened the emphasis on other labor
and wage data, said Quincy Krosby, market strategist at Prudential
Financial. "There is a premium on data with regard to employment,
wages, and anything that suggests that Friday's number was an
aberration," she said.
That includes Tuesday's job openings and labor turnover survey,
which is closely watched by the Federal Reserve. Of interest in the
report is the number of people who voluntarily quit their jobs. A
higher number tends to indicate a healthier economy in which people
are more likely to quit for higher paying or better employment.
"The more the quit rate rises, the more it becomes part of the
anecdotal confirmation that wages are moving higher and that the
so-called slack in the employment landscape is receding," said Ms.
Krosby.
Action in the stock market has been choppy this year as
investors prepare for an eventual increase in interest rates.
Comments from Federal Reserve Chairwoman Janet Yellen have
underscored that even when the Fed begins to move on rates, it will
do so gradually. The expected slow pace of rate increases will make
stocks appear a more attractive investment than bonds for a while
longer, investors say. The Dow has added 0.3% this year and is up
10% over the last 12 months, through Monday's close.
In commodity markets, crude-oil futures slipped 1.5% to $51.38 a
barrel. Gold futures lost 0.5% to $1212.20 an ounce.
The yield on the 10-year Treasury note was little changed at
1.904% from 1.913% on Monday. Yields rise as prices fall.
In corporate news, FedEx Corp. said it would buy Dutch
parcel-delivery firm TNT Express NV for about EUR4.4 billion ($4.8
billion) to expand in Europe. FedEx shares rose 4.1%.
Informatica Corp. agreed to be taken private by Permira Advisers
LLC and the Canada Pension Plan Investment Board in a deal valued
at $5.3 billion, the largest U.S. leveraged buyout so far this
year. Shares rose 4.4%.
Energy logistics company Tesoro Logistics LP, a master limited
partnership created by refinery operator Tesoro Corp., has agreed
to buy the remaining stake of QEP Midstream Partners LP in an
exchange of common units. Shares of QEP Midstream jumped 5.5%.
Write to Saumya Vaishampayan at saumya.vaishampayan@wsj.com
Access Investor Kit for TNT Express NV
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=NL0009739424
Access Investor Kit for Alcoa, Inc.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US0138171014
Access Investor Kit for The Dow Chemical Co.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US2605431038
Access Investor Kit for FedEx Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US31428X1063
Access Investor Kit for Informatica Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US45666Q1022
Access Investor Kit for TNT Express NV
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US87262N1090
Access Investor Kit for Tesoro Corp.
Visit
http://www.companyspotlight.com/partner?cp_code=P479&isin=US8816091016