Forexpros – U.S. stocks were moderately higher on Tuesday, after disappointing U.S. manufacturing data while investors eyed a second liquidity operation by the European Central Bank on Wednesday.
During early U.S. trade, the Dow Jones Industrial Average edged inched up 0.04%, the S&P 500 index added 0.08%, while the Nasdaq Composite index rose 0.34%.
The U.S. Commerce Department said earlier that orders for long lasting manufactured goods fell by the most in three years in January.
Durable goods orders dropped 4.0%, far worse than forecasts for a 0.8% decline, while core durable goods orders, which excludes transportation items, tumbled by a seasonally adjusted 3.2% in January.
But sentiment remained supported as markets looked ahead to the launch of the ECB’s second three-year long-term refinancing operation, after a similar liquidity injection in December averted a credit crunch and eased pressure on peripheral euro zone bond markets.
Financial stocks were mixed as shares in Citigroup jumped 0.94% and JP Morgan rose 0.18%, while Goldman Sachs slid 0.61%.
Bank of America shares were up 0.12% following its victory when a U.S. appeals court ruled that a proposed USD8.5 billion settlement with investors in mortgage-backed securities should be reviewed in New York state court, not federal court.
Meanwhile, General Motors saw shares shed 0.53% amid reports the company was in advanced talks to buy a small stake in French automaker PSA Peugeot Citroen as part of a proposed strategic alliance in Europe and elsewhere.
McDonald’s also fell 0.12% after the world’s largest fast-food chain said it plans to increase the number of restaurants in China.
On the upside, shares in Office Depot surged 12.25% after the office supply chain posted better-than-expected earnings thanks to lower expenses and fewer discounts during the holiday season.
Priceline.com also added to gains with shares climbing 6.80% as the online travel site reported earnings that topped estimates. At least 10 brokerages boosted their price targets on the firm.
Across the Atlantic, European stock markets turned lower. The EURO STOXX 50 dropped 0.36%, France’s CAC 40 fell 0.15%, Germany’s DAX retreated 0.25%, while Britain’s FTSE 100 slipped 0.03%.
During the Asian trading session, Hong Kong’s Hang Seng Index rallied 1.15%, while Japan’s Nikkei 225 Index rose 0.92%.
Later in the day, the Conference Board was to release a report on U.S. consumer confidence.
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