By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks closed slightly lower
Tuesday, as an effort to build on Monday's strong gains ran out of
steam.
No top-tier economic reports came out, but
mergers-and-acquisitions news helped to limit losses, with FedEx
Corp. (FDX) among the S&P 500's biggest advancers after the
shipping giant said it would buy Dutch logistics company TNT
Express.
The S&P 500 (SPX) dipped by 4.29 points, or 0.2%, to close
at 2,076.33. Only health care (XLV) and energy (XLE) avoided losses
among the index's 10 sectors. Energy-related stocks rose along with
the U.S. oil benchmark, (CLK5) which jumped 3.5% and settled at its
best level so far this year.
Meanwhile, the Dow Jones Industrial Average (DJI) inched lower
by 5.43 points, or less than 0.1%, to end at 17,875.42, after the
blue-chip gauge briefly showed a gain of more than 100 points. The
Nasdaq Composite (RIXF) fell by 7.08 points, or 0.1%, to finish at
4,910.23.
Tuesday's slip came amid slow trading, as composite volume was
at its second-lowest level so far this year, according to a Dow
Jones markets data group. But the reversal to the downside still
indicates some wariness among investors ahead of first-quarter
earnings season, which unofficially kicks off Wednesday with Alcoa
Inc.'s (AA) report after the close.
The three main indexes all remain up between 0.5% and 0.6% for
the week after Monday's rally, which was attributed to bets that
last Friday's weak jobs report could delay interest-rate hikes.
This week's gains by equities should be accompanied by a dose of
caution, according to some market experts. The monthly average for
job creation in 2015 is still above 200,000 so far, and the dismal
March report could see a revision when next month's data are
published, Stan Shamu, market strategist with IG, said in a
note.
"As far as the Fed is concerned, it is unlikely that one month's
data will make all the difference, and we know the central bank
only has to be reasonably confident that inflation and jobs will
trend toward target over the next couple of years for it to act,"
Shamu said.
Among chart watchers, BTIG's Katie Stockton said her team is
"not convinced that the pullback has fully matured yet." A breakout
above "intraday resistance" near 2,089 by the S&P 500 "would be
an 'all-clear' signal," said Stockton, BTIG's chief technical
strategist, in a note Tuesday. The S&P scored a record close on
March 2, but has since held below that record level for five
weeks.
Tuesday's economic news:Job openings rose to a 14-year high
(http://www.marketwatch.com/story/job-openings-rise-to-14-year-high-in-february-2015-04-07)
of 5.13 million in February, the Labor Department said.
Before the market's open, Minnesota Fed President Narayana
Kocherlakota, a leading dove and nonvoting member, said in a speech
that no rate hikes are needed until 2016's second half
(http://www.marketwatch.com/story/no-fed-rate-hike-needed-until-second-half-of-2016-kocherlakota-2015-04-07).
Individual movers: Shares of FedEx Corp
(http://www.marketwatch.com/story/fedex-to-buy-tnt-express-for-48-billion-in-cash-2015-04-07).(FDX)
closed 2.7% higher after the company announced a $4.8 billion deal
to buy TNT Express NV (TNTEY).
In what could be the biggest U.S. leveraged buyout of the year
so far, Informatica Corp.(INFA) agreed to be taken private by
Permira Advisors LLC and the Canada Pension Plan Investment Board
in a $5.3 billion deal
(http://www.marketwatch.com/story/informaticas-stock-rallies-after-53-billion-buyout-deal-2015-04-07).
Informatica's stock finished up 4.3%.
Read more about Tuesday's jumpiest stocks in the Movers &
Shakers column
(http://www.marketwatch.com/story/dave-busters-international-speedway-earnings-in-focus-2015-04-07)
Other markets:Oil rose, erasing early losses
(http://www.marketwatch.com/story/oil-eases-with-us-stockpiles-production-back-in-focus-2015-04-07)
and adding to Monday's big advance. Gold prices ()(GCK5) fell after
a gain on Monday, while the dollar (DXY)pushed higher against major
rivals
(http://www.marketwatch.com/story/us-dollar-bides-time-while-aussie-jumps-after-rba-holds-steady-2015-04-07).
In a catch-up move as investors returned from a long holiday
weekend, European stocks
(http://www.wsj.com/articles/permira-cppib-poised-to-take-informatica-private-in-5-billion-deal-1428398039)
finished with gains. Asian stock markets closed mostly higher
(http://www.marketwatch.com/story/asian-shares-mostly-higher-following-wall-street-gain-2015-04-06).
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