By Anora Mahmudova and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- The U.S. stock market ended Tuesday's
choppy session posting marginal gains. But equally important,
Tuesday's moves marked the first time the market closed mostly flat
after registering wild swings in the previous five sessions.
Stocks rose sharply in early Tuesday trading, boosted by
better-than-expected earnings, but the main benchmarks trimmed
gains by late afternoon, and briefly dipped into the red.
The S&P 500 (SPX) closed 3 points, or 0.2%, higher at
1,877.70. The benchmark index still sits below its 200-day moving
average, after breaching the level on Monday for the first time in
nearly two years.
The Dow Jones Industrial Average (DJI) swung between gains and
losses and closed down 5.9 points at 16,315.19, the lowest level
since April 5. The Nasdaq Composite (RIXF) gained 13 points, or
0.3%, to 4,227.7.
The Russell 2000 (SPX) outperformed its large-cap counterpart
and closed up 12 points, or 1.2%, at 1,061.60.
Stuart Freeman, chief equity strategist at Wells Fargo Advisors,
urged investors to keep volatility in perspective and not be scared
of daily moves, saying volatility is normal in equity markets.
Freeman also advised investors to consider investment horizons and
be well diversified.
Investors welcomed strong earnings results from Citigroup Inc.
and Johnson & Johnson, which earlier outweighed downbeat German
sentiment data that hit equities across Europe.
Vote here: Does this stock slump have further to go?
Earnings in focus: Citi (C) shares popped up 3.2% after
third-quarter profit and revenue rose from the year-earlier period.
Citi also plans to pare back from retail banking in smaller
countries.
Meanwhile, Wells Fargo & Co. (WFC) shares slipped 2.7% even
as the bank's quarterly profit met expectations but revenue beat
estimates.
Shares in Southwest Airlines Co. (LUV) rose 3.9% and Delta Air
Lines Inc. (DAL) rallied 6.1% as concerns about a global Ebola
pandemic eased.
Domino's Pizza Inc. (DPZ) jumped 11% after the chain delivered
better-than-expected results.
Among other stocks in focus, Versar Inc. (VSR) surged 17%. Its
PPS unit makes hazmat suits and mobile decontamination shelters.
Other stocks linked to concerns over the Ebola virus continued a
pattern of pushing higher.
Lakeland Industries Inc. (LAKE) and Alpha Pro Tech Ltd. (APT)
fell more than 26%, after soaring during the previous few sessions
on Ebola fears. Ebola stock trading volumes should raise red
flags
Read about today's notable stocks in Movers & Shakers
column.
Other markets:European stocks fell after a key sentiment survey
out of Germany turned negative. Burberry Group PLC shares dropped
after the luxury-goods maker posted a rise in sales, but cited
unfavorable foreign exchange headwinds and Chinese weakness. U.K.
inflation fell to a five-year low. The European Court of Justice
has begun holding a hearing on the European Central Bank's Outright
Monetary Transactions bond-buying program.
In Asia, the Nikkei 225 index sank 2.4%, falling below the
15,000 level and skidding to two-month lows.
Crude-oil prices(CLX4) drifted lower, and gold(GCZ4) inched up,
while the dollar ((USDJPY) pulled back from an overnight slip
against the Japanese yen.
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