By Victor Reklaitis and Barbara Kollmeyer, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks stepped higher Tuesday,
building on the prior session's solid gains that came as rate-hike
worries faded.
No top-tier economic reports are scheduled, but
mergers-and-acquisitions news underpinned the market's move higher,
with FedEx Corp. (FDX) among the S&P 500's biggest advancers
after the shipping giant said it would buy a Dutch logistics
company TNT Express.
The S&P 500 (SPX) was last up five points, or 0.3%, to
2,086, with health care (XLV) and energy (XLE) faring best among
the index's 10 sectors. Energy-related stocks rose along with oil
prices (CLK5).
Meanwhile, the Dow Jones Industrial Average (DJI) was last up 73
points, or 0.4%, to 17,953, after the blue-chip gauge briefly
showed a gain of more than 100 points. The tech-heavy Nasdaq
Composite (RIXF) tacked on 23 points, or 0.5%, to 4,940, aided by
gains in biotech stocks (IBB).
The Dow closed higher by nearly 120 points on Monday as U.S.
stocks rallied
(http://www.marketwatch.com/story/us-stocks-futures-tumble-after-jobs-data-triggers-corporate-profit-worries-2015-04-06),
helped by a belief among market observers that last Friday's weak
jobs report could mean a slower pace of rate rises than previously
expected. New York Federal Reserve President William Dudley also
provided a lift as he reiterated on Monday that any decision to
hike interest rates will be data dependent.
The latest stock run-up should be accompanied by a dose of
wariness, 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 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)
climbed after the company announced a $4.8 billion deal to buy TNT
Express NL (TNTEY).
In what could be the biggest U.S. leveraged buyout of the year
so far, Informatica Corp.(INFA) is nearing a deal to be taken
private
(http://www.marketwatch.com/story/informatica-poised-to-be-taken-private-in-5-billion-deal-2015-04-07)
by Permira Advisors LLC and the Canada Pension Plan Investment
Board.
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) was pushing 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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