By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market struggled to
maintain earlier gains Wednesday following the Dow Jones Industrial
Average and S&P 500's largest four-consecutive-day rise in more
than a year.
Earlier stocks were boosted by an upbeat economic outlook from
St. Louis Federal Reserve President James Bullard and positive data
from overseas.
The S&P 500 (SPX) was less than a point higher at 1,819.39,
which leaves the benchmark index 1.5% below its all-time high
reached last month.
The Dow Jones Industrial Average (DJI) fell below the 16,000
mark, after dropping 31 points, or 0.2% to 15,964.88.
The Nasdaq Composite (RIXF) was 8 points, or 0.2%, higher at
4,199.62. After the previous day's rally, the tech-heavy index
turned positive for 2014 and is now 0.6% higher for the year.
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Recent weak economic data have not deterred Bullard's optimism
about the U.S. economy: "I'm still optimistic about the prospects
for this year. I think we can get 3% [growth] or better," he said
in a panel discussion sponsored by the European-American Chamber of
Commerce in New York.
"We have a combination of good news, which is underpinning
improvement in sentiment. Two big areas of uncertainty were removed
on Tuesday after Yellen's first congressional testimony and debt
ceiling agreement," said Paul Magnus, head of equity strategy at
Wells Fargo Private Bank.
"Earnings have been better than expected with certain sectors
showing potential operational growth," he added.
The Bank of England's encouraging outlook for the U.K. economy
and stronger-than-expected Chinese trade data have aided
sentiment.
Stocks rallied during the previous session after Federal Reserve
Chairwoman Janet Yellen pledged to keep interest rates low and said
the Fed would continue to taper the pace of bond purchases if the
economy keeps improving.
In earnings news, TripAdvisor (TRIP) shares rallied 7% after the
online travel site reported a rise in profits in the fourth
quarter.
Shares of DaVita HealthCare Partners Inc.(DVA) rose 6.3% after
late Tuesday reporting better-than-expected fourth-quarter results
and posting an update profit outlook for 2014.
Shares of Fossil Group Inc. (FOSL) rose 6.1% after the
retailer's fourth-quarter profit, beat Wall Street
expectations.
Dr Pepper Snapple Group Inc. (DPS) shares added 3.3% after the
soft drink maker on Wednesday reported estimate-beating
fourth-quarter earnings.
Amazon.com Inc. (AMZN) fell 4% after the stock's rating was cut
to neutral from buy while its price target was lowered at UBS.
Deere(DE) shares initially rose after the farm-equipment maker
reported first-quarter earnings, which beat forecasts. But shares
fell 0.7% shortly after the market open.
Cisco (CSCO) will report after the market closes and analysts
expect second-quarter earnings of 46 cents a share. Shares were
slightly higher on Wednesday.
In other markets, European stocks rose for a sixth-straight
session, while the British pound rose against the dollar after the
Bank of England raised its forecast for U.K. economic growth in
2014 to 3.4%, from a prior forecast of 2.8%. The central bank also
signalled it won't hike rates until 2015 because there is too much
spare capacity in the labor market.
The Chinese data triggered losses for the Aussie dollar against
the U.S. dollar (AUDUSD), while gold (GCH4) continued its upward
march building on a 7% rise so far this year. Oil(CLH4) recaptured
the $100 mark after a below-expectations rise in crude supplies in
data released Tuesday.
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