By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- Tuesday's session on Wall Street had
all the hallmarks of a "risk-on" trade. Stocks closed moderately
higher as estimate-beating earnings aided investors' risk
appetite.
Cyclical stocks such as financial and technology companies led
the gains on the S&P 500, while investors stayed away from
utilities and consumer staples sector stocks, recent market
leaders. They closed lower.
Investors shrugged off mildly disappointing housing and consumer
confidence reports, while focusing on the Federal Open Market
Committee meeting on Wednesday, as well as GDP and jobs reports due
to be released later this week.
The S&P 500 (SPX) ended the day 8.9 points, or 0.5%, higher
at 1,878.33. Eight of 10 main sectors on the benchmark finished
with gains.
The Dow Jones Industrial Average (DJI) closed 86.63 points, or
0.5%, higher at 16,535.37, with Merck & Co. (MRK) leading the
gains.
The Nasdaq Composite (RIXF) added 29.14 points, or 0.7%, to
4,103.54. High-growth stocks, such as biotechs and social-network
companies, posted solid gains. The Nasdaq Biotechnology index (NBI)
rose 2.7%, while Global X Social Media Index ETF (SOCL) gained
2.6%.
Follow MarketWatch's live blog of today's stock-market
action.
"Overall, earnings have been much higher than expected, beating
vastly lowered expectations," said Paul Zemsky, chief investment
officer of Multi-Asset Strategies at ING U.S. Investment
Management.
"After the selloffs in the momentum stocks, markets are much
more balanced now," he added.
In economic news, consumer confidence dipped slightly in April,
coming in below economists' forecasts. Separately, U.S. home-price
growth slowed in February for the fourth consecutive month.
In earnings news, Twitter Inc. (TWTR) shares fell nearly 10% in
extended hours trading, giving up all of Tuesday's gains, after the
microblogging site reported quarterly results. Earnings per share
and revenue beat estimates, but Twitter's gain in active monthly
active users -- 255 million -- was below expectations. Twitter
reports results with focus on user growth: live blog.
EBay Inc(EBAY) reported a loss due to "a discrete tax charge" of
$3 billion. Analysts estimated earnings of 67 cent a share. Shares
in the company fell 3.8% in aftermarket trade.
Sprint Corp. (S) shares jumped 11% after the company posted a
smaller-than-expected loss in the first quarter.
Merck & Co. (MRK) rose 3.6% after it reported
higher-than-expected earnings.
Coach Inc. (COH) shares fell 9.3% after the luxury-goods
retailer reported weak North American sales.
Shares of Archer Daniels Midland Co. (ADM) dropped 2.6% after
the company's first-quarter profit and sales missed analysts'
forecasts.
Shares of Amicus Therapeutics Inc. (FOLD) soared 21% to $2.22
after the company announced positive data in a study of a drug to
treat patients with Fabry disease.
Gogo Inc. (GOGO) shares slid 22% after AT&T Inc. (T)said
Monday it would launch in-flight, high-speed Internet service on
airlines, competing with the company. The slide triggered the
short-sale circuit breaker on the Nasdaq OMX exchange.
In overseas markets, European markets were higher after an
easing in geopolitical tensions between Russia and the West. Late
Monday, Moscow assured Washington that it won't invade Ukraine,
while reports said Russian troops had left the Ukrainian border and
returned to their base. Asia markets closed mixed.
In other financial markets, most metals (GCM4) declined, while
oil prices (CLM4) settled lower.
More must-reads from MarketWatch:
Bull market won't die until a recession hits: RBC
Still use Internet Explorer? Don't
Markets gird for return of El Niño
Subscribe to WSJ: http://online.wsj.com?mod=djnwires