By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks drifted lower in a choppy
trading session on Tuesday. Urban Outfitters slumped after
disappointing earnings, while Macy's and J.C. Penney rallied after
an upgrade from analysts.
The S&P 500 (SPX) inched down 5 points, or 0.1%, to
1,874.52, retreating from record levels.
The Dow Jones Industrial Average (DJI) lost 35 points, or 0.1%,
to 16,396.87.
The Nasdaq Composite (RIXF) slipped 3.2 points, or 0.1%, to
4,331.25.
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"Markets are confused right now, after getting conflicting set
of data. On the one hand, job openings indicated demand for workers
and improvement in labor market, on the other, wholesale
inventories rose, as businesses overshot and could not sell goods
sooner," said Kim Caughey Forrest, portfolio manager and senior
equity analyst at Fort Pitt Capital.
Job openings rose in January in line with expectations. There
were 3.97 million openings compared with 3.91 million in December.
The so-called Jolts survey is one of the pieces of labor market
data that Federal Reserve Chairwoman Janet Yellen has said she pays
attention to.
U.S. wholesale inventories rose in January while wholesale sales
fell, the Commerce Department reported Tuesday.
Small-business sentiment, released before the market open,
slumped in February. According to the National Federation of
Independent Business, its small-business index dropped by more than
expected, on concerns over sales, the economy and employment
driving the downturn.
Among individual stocks, retailers were in the spotlight. Shares
of American Eagle Outfitters Inc. (AEO) tumbled 5.9% after
fourth-quarter profit and outlook disappointed.
Shares of Urban Outfitters Inc. (URBN) fell 5.2% after the
company reported results on Monday that revealed a drop in
fourth-quarter same-store sales late Monday.
Shares of Dick's Sporting Goods Inc. (DKS) rose 3% after the
company posted results that largely met forecasts.
Shares of Macy's (M) and J.C. Penney rose after upgrades from
analysts.
J.C. Penney Co. (JCP) shares jumped 8.6% after the retailer was
upgraded to buy from neutral by Citigroup. Analyst Oliver Chen
expects that the company's "going back to basics" strategy will
spur positive comparable sales in line with the retailer's
outlook.
Macy's rose 2% after analysts at Wells Fargo raised the stock to
outperform from market-perform.
Shares of La Jolla Pharma Co. (LJPCD) soared 65%, tracking a
rally late Monday after the microcap biotech said its study for a
chronic kidney disease treatment showed a statistically significant
improvement.
Fuel Tech Inc. (FTEK) shares sank 14% after the
air-pollution-control technology company's results fell short of
Wall Street expectations late Monday.
In other markets, Asia stocks managed flat-to-positive closes
after Monday's mauling, with the China Shanghai Composite Index
closing up 0.1%. European stocks closed slightly higher. Copper
prices (HGK4), hit particularly hard by that downbeat Chinese
export data on Monday, managed a gain of 1 cent.
Commodity prices were volatile today. Oil prices, which perked
up earlier, were little changed by noon. Gold prices, which reached
$1,350 on worries over Ukraine, in the afternoon gave up gains and
turned lower. Benchmark Treasury yields also ticked lower, after
being higher in the morning.
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