The Nasdaq appeared to suffer a distribution day, according to preliminary figures. It would be its fourth in recent weeks.
Blue chips fared best as the Dow rose 0.6%. The NYSE composite followed with a 0.2% gain. On the negative side, the S&P 500 edged down 0.1% while the Nasdaq dropped 0.9%.
Preliminary data indicated that volume rose across the board.
Gold showed some life as the U.S. dollar weakened.
The SPDR Gold Trust (GLD), an exchange traded fund that reflects the price of bullion, closed at its highest level in more than five weeks.
Gold miner Randgold Resources GOLD notched a 52-week high, but trade was only moderately up. Many of the gold-mining stocks have strong Relative Strength Ratings but mediocre-to-weak EPS Ratings.
Among leading stocks, most made their moves on modest volume.
One exception was American Italian Pasta (AIPC), which lost 14% on huge trade after missing analyst estimates. The stock, however, had already lost much of its shine as a leader. Its Relative Price Strength line had been declining since March.
On Wednesday, retail sales figures for April are due to be released.
4:15 p.m. Update: Stocks Close Mixed; Volume Signaled Higher
BY JUAN CARLOS ARANCIBIA
The market rallied back from losses but still closed mixed Tuesday.
The Nasdaq lagged, losing 0.9% as technology shares slumped on a weak chip-sales report.
The S&P 500 fell 0.1% after giving up a late gain. But the Dow rose 0.6% and the NYSE composite 0.2%.
Volume rose across the board, according to preliminary readings. If confirmed, the Nasdaq would notch a new distribution day.
Some defensive industries led, including tobacco and drugmakers. Fertilizers and other ag stocks led. The Market Vectors Agribusiness ETF rose 3%.
Transportation stocks again fell as oil prices topped $60 a barrel intraday. Some consumer-discretionary industries such as gaming and electronics retailers fell.
3:15 p.m. Update: Stocks Fight Back In Late Trade
BY VINCENT MAO
Stocks turned mixed going into the final hour of Tuesday's session, with blue-chips leading the way.
The Dow was up 0.2% after having been down about 0.5%. Gains in Coca-Cola (KO), Exxon Mobil (XOM), Chevron (CVX) and Johnson & Johnson (JNJ) boosted the index.
Meanwhile, the S&P 500 lost 0.4% and NYSE composite 0.1%. The Nasdaq was again the biggest percentage loser, down 1.1%. But that's up from a deficit of 2% at session low. A number of bellwethers and chip stocks weighed on the index.
Turnover was tracking vastly higher on the NYSE and a tad lower on the Nasdaq.
Financials slumped for the second straight session.
Capital One Financial (COF) dropped 9%, BB&T (BBT) 6%, Wells Fargo (WFC) 5% and JPMorgan Chase (JPM) 4%.
Even bond insurers Ambac Financial Group (ABK) and MBIA (MBI) reversed nice gains. Both lost 8%.
Elsewhere, chip equipment maker Applied Materials (AMAT) lost 4% ahead of its Q1 results after the bell. Analysts see the company losing 10 cents a share. Sales are slated to fall 58% to $904.4 million.
2:15 p.m. Update: Volume Picks Up; Stocks Remain Lower
BY PATRICK CAIN
Stocks continued the day's downward trend as volume perked up.
The Dow fell 0.3%, the Nasdaq 1.7%, the NYSE composite 0.8%. The S&P 500 is off 1% and fighting to hold the 900 level.
Volume was higher on the NYSE but lower on the Nasdaq.
Decliners were outpacing advancers by 4-to-1.
Papa John's InternationalPZZA, a pizza chain, fell 6%. Even after the drop, it was still 4% above the 10-week moving average where it has found support.
Ormat TechnologiesORA designs and operates geothermal power plants. Shares are down 5%, giving up most of Monday's 9% gap-up, which was spurred by earnings. The stock is still up for the week, putting it on pace to finish positive for the 10th straight week.
Its rally, however, has not come with strong volume. Five of the past seven weeks came in lower volume. Those with higher trade were marginally higher. This week, though, Ormat is on pace to more than triple its normal weekly volume.
1:15 p.m. Update: Indexes Extend Losses In Afternoon Trade
BY VINCENT MAO
Major indexes slumped to new session lows in early afternoon trading Tuesday.
The Nasdaq shed 1.8%, barely holding on to the 1700 level. Nasdaq heavyweights Research In Motion (RIMM) dropped 6%, Apple (AAPL) 4% and Qualcomm (QCOM) 3%. The Philadelphia semiconductor index swoon 4.8%.
Meanwhile, the S&P 500 lost 1.1%, NYSE composite 1% and Dow 0.4%.
Volume continued to be mixed with NYSE tracking vastly higher and Nasdaq slightly lower.
ArcSight (ARST) reversed early gains and dropped 9% in brisk volume. The security software maker is extended after clearing a cup-with-handle base in March. It may be headed for a test of its 50-day moving average.
Buckle (BKE) gave up 8% and breached its 50-day line. KeyBanc Capital Markets cut shares to underweight from hold on belief that the apparel retailer will enter a phase of slowing earnings growth. Buckle reports Q1 results May 21. Analysts are expecting profit of 50 cents a share on revenue of $194.3 million.
Longtop Financial Technologies (LFT) reversed morning gains and shed 5% on brisk trade. The Chinese financial software maker reports earnings May 27. Analysts see profit rising 50% to 18 cents a share.
American Italian Pasta (AIPC) widened its loss to 18%. The stock has already traded about five times its average volume.
12:15 p.m. Update: Indexes Stay Negative; Trade Is Mixed
BY PATRICK CAIN
Stocks continued to drag, keeping the main indexes in negative territory at midday.
The Dow fell 0.1%, the Nasdaq 1%, the NYSE composite 0.2% and the S&P 500 0.5%. Volume was higher on the NYSE, lower on the Nasdaq.
Mindray Medical (MR), a Chinese maker of imaging systems, fell 9%. After the market closed yesterday the company reported earnings of 23 cents a share, missing views by 2 cents. The stock looked as if it were forming a high handle. It also appears to be finding resistance at its 200-day moving average.
Nike (NKE) also slid 4%. Sterne Agee downgraded the shoemaker to sell from neutral. The chart looks as if it could be forming a handle to a long base.
Taleo (TLEO), a maker of talent management software, gained 6% on fast trade. The stock has already tripled from its low in November. Even at that, the stock is still 38% off its 52-week high.
Pre-Paid Legal Services (PPD) was also up 4%. The last two weeks, the provider of legal services gained 21%, which both weeks seen subpar trade.
11:15 a.m. Update: Indexes Worsen In Morning Trade
BY VINCENT MAO
Stocks worsened in late-morning trading. The Dow and NYSE composite joined their counterparts into negative territory.
The Nasdaq dropped 0.9%, dragged down by bellwethers and chip issues. The Philadelphia semiconductor index lost 2.8%, nearing its 50-day moving average.
Meanwhile, the S&P 500 fell 0.7%, the NYSE composite 0.3% and the Dow 0.2%.
Volume was tracking slightly higher on the NYSE and lower on the Nasdaq.
Automakers fell hard.
General Motors (GM) tumbled 21% on news that six executives sold their shares in the ailing auto giant. The stock fell to its lowest levels since April 1933.
Ford (F) gapped down and dropped 13 after announcing a 300-million-share offering late Monday.
Recent IPO Rosetta Stone (RST) gapped down and fell 8% after it warned of a second-quarter loss due to a charge.
Cubic (CUB) lost 5% following a downgrade. JPMorgan cut the defense and transportation firm to neutral from overweight. But the stock remained above a 30.79 buy point from a cup-with-handle base.
On the upside, gold producers Lihir Gold (LIHR) and AngloGold Ash-anti (AU) gained 4% and 2% respectively.
The yellow metal rose $4.50 to $918 an ounce.
Elsewhere, defensive issues such as candy, tobacco and drugs showed gains, but few have high ratings.
10:15 a.m. Update: Stocks Fade From Upbeat Open
BY VINCENT MAO
Major stock indexes opened higher Tuesday but then quickly turned mixed.
The NYSE composite rose 0.1% and the Dow was mostly unchanged. The Nasdaq, hurt by big-cap tech stocks, lost 0.6%, while the S&P 500 fell 0.3%.
Volume was tracking lower on the NYSE, but higher on the Nasdaq.
In economic news, the IBD/TIPP Economic Optimism Index slipped 0.5 points, or 1.0%, in May to 48.6 vs. 49.1 in April. That's still above the 12-month average of 44.4.
On the downside, American Italian Pasta (AIPC) gapped down and tumbled 13% after reporting disappointing Q1 sales. Before the open, the pasta maker delivered profit of $1.21 a share, up 142% from the prior year and well ahead of views for 75 cents. But revenue grew only 16% to $162.3 million, or below consensus estimates of $163.4 million.
Stifel Financial (SF) gapped down and lost 8% after posting Q1 earnings and sales below views late Monday.
Other financials were mostly lower. Capital One Financial (COF) reversed from a higher open and dropped 6%. BB&T (BBT) fell 5%, and PNC Financial Services (PNC) lost nearly 3%.
On the upside, STEC (STEC) gapped up and climbed 33% to a near 52-week high on earnings news. Late Monday, the maker of memory solutions topped views with a 143% rise in Q1 profit and a 25% gain in sales. The company also guided Q2 results well above analysts' estimates. This morning Thomas Weisel Partners raised STEC shares to overweight from market weight and upped its price target to 15 from 6.
9:15 a.m. Update: Stocks On Track For Higher Open
BY VINCENT MAO
Stock futures signaled a higher open Tuesday as equities looked to bounce back from the prior session's pullback.
Nasdaq 100 futures rallied 6 points vs. fair value, S&P 500 futures also rose 6 points and Dow futures gained 51 points.
In economic news, the trade deficit widened to $27.6 billion in March as the recession put a damper on American exports. But that was still better than views of a $29 billion deficit.
The Treasury budget for April will be out at 2 p.m. EDT.
Speaking at a conference late Monday, Federal Reserve Ben Bernanke said results from stress tests of the nation's 19 biggest banks were "encouraging."
Meanwhile, Bank of America (BAC) reportedly sold about $7.3 billion of its stake in China Construction Bank in an effort to raise capital. Shares rose 3% in the pre-open trade.
Citigroup (C) said it's using nearly all of the $45 billion in bailout funds to make new loans. Shares rose 3% in the pre-market.
Capital One Financial (COF) rose 2% after its price target was raised to 25 from 12 by JPMorgan. In addition, RBC Capital Markets started coverage on Capital One with a sector perform rating.
In M&A news, Foundation Coal (FCL) surged 27% in the pre-market on the news that it might be bought by Alpha Natural Resources (ANR) for about $1.4 billion stock. The deal would create one of the nation's largest coal producers. Alpha Natural shares slipped 1%.
Elsewhere, Ctrip.com International (CTRP) vaulted 18% in pre-open trading following Monday night's stellar quarterly results.
Crude oil rose a tad above $60 a barrel, but then pulled back. The June contract gained $1.42 to $59.92.
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