Stocks closed with modest gains on Tuesday, wiping off almost all of the previous session’s losses, as investors set aside some concerns resulting from a drop in consumer confidence. Better-than-estimated earnings from Walgreen Co. also helped lift stocks higher.
The Dow Jones Industrials Average added 46 points, or 0.43%, to 10858.14. Leading the 30-share index higher were Pfizer (NYSE:PFE), Intel (NASDAQ:INTC) and Alcoa (NYSE:AA) which rose 1.5%, 1.4%, and 1.2%, respectively. The tech-heavy Nasdaq Composite index closed the day at 2379.59, up 9.82, or 0.41%. The broader S&P’s 500-stock index gained more than 5 points, or 0.5%, to 1147.70. Advancing shares beat those that fell in price by a two-to-one margin as volume picked up slightly. The market’s measure of volatility, the CBOE Vix, edged up 0.3% to 22.60.
As grim economic news continued to pour in, investors grew hopeful that the Federal Reserve would reinitiate measures that would squeeze out broader uncertainties from the economy.
Meanwhile, Chevron (NYSE:CVX) reported that it had drilled the first deepwater North American well since the Deepwater Horizon catastrophe in the Gulf, off Newfoundland’s coast. Apple (NASDAQ:AAPL) shares fell 1.5% on rumors the company’s COO Tim Cook was leaving to head Hewlett-Packard (NYSE:HPQ).
Leading the S&P 500 industry sectors higher were Consumer Services, up 1%, and health care, up 0.8%. Walgreens (NYSE:WAG) posted fiscal fourth-quarter earnings of 53 cents a share, ex-items, well above estimates of 44 cents. Health care shares rose on reports the Supreme Court had agreed to hear an appeal from drug makers that would block hospitals and clinics from suing for violations of a federal program allowing discount purchasing of medicines.
Gold prices reached a new all-time high of $1300, with Treasury’s $35 billion auction of 5-year notes receiving the lowest-ever yield of 1.26% with demand from both direct and indirect bidders. The US dollar dropped 0.5% against a basket of currencies. The Treasury plans to auction $29 billion 7-year notes following Tuesday’s well-bid sale of 5-years.
ALCOA INC (AA): Free Stock Analysis Report
APPLE INC (AAPL): Free Stock Analysis Report
CHEVRON CORP (CVX): Free Stock Analysis Report
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PFIZER INC (PFE): Free Stock Analysis Report
WALGREEN CO (WAG): Free Stock Analysis Report
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