MARKET SNAPSHOT: Stocks Edge Up; CBS, Monsanto Lead S&P

By Victor Reklaitis, MarketWatch

NEW YORK (MarketWatch) -- U.S. stocks inched higher Wednesday, after dipping early on weak reports for durable-goods orders and the economy's first-quarter performance.

The S&P 500 Index (SPX) rose 4 points, or 0.2%, to 1,954, while the Dow Jones Industrial Average (DJI) gained 30 points, or 0.2%, to 16,848.

The Nasdaq Composite Index (RIXF) advanced 7 points, or 0.2%, to 4,358.

The S&P 500 and Dow have closed lower for two straight sessions, pulling back from their record closing levels on Friday. On Tuesday, stocks endured a late-afternoon swoon, with the Dow shedding 119 points as some analysts blamed escalating violence in Iraq for the drop.

Orders for durable goods fell 1% in May, the Commerce Department said Wednesday. That was below the 0.5% expected by economists surveyed by MarketWatch.

In addition, the U.S. economy shrank by a 2.9% annual pace in the first quarter instead of 1% as previously reported, marking the biggest decline since early 2009 when the Great Recession was winding down. The economy has strengthened since the first quarter that was ravaged by an unusually harsh winter, with growth projected to rise roughly 3% in the second quarter, which ends Monday.

Investors knew the GDP report would "stink, but not this much," said Naeem Aslam, chief market analyst at Ava Trade, in emailed comments. But he said he expects "payback" in the current quarter, meaning "a strong reading."

Peter Cardillo, chief market economist at Rockwell Global Capital, noted that excluding defense spending, durable goods orders increased. He also said Wednesday's two economic reports reinforce the notion that the Federal Reserve won't raise interests rates sooner than expected, and he sees stocks staying in a narrow trading range for the summer.

"For now, I just think the market holds its own here," Cardillo told MarketWatch. "I don't see an interruption of the longer-term bull market, but rather just a pause."

Among individual stocks, Valero Energy Corp.(VLO) slid 9%, faring worst among S&P 500 stocks. CBS Corp.(CBS) and Monsanto Co. (MON) performed best, with Monsanto up 5.1% and CBS up 4.4%. Broadcasters gained as Supreme Court ruled against Aereo, while Monsanto jumped after it trounced profit estimates.

(Read more in our Movers & Shakers column http://www.marketwatch.com/story/monsanto-barnes-noble-jump-general-mills-down-2014-06-25.)

In other markets, Japan's Nikkei Average fell 0.7%, along with other Asian stock markets. In Europe, the Stoxx Europe 600 pulled back.

U.S. benchmark crude-oil futures (CLQ4) and gold futures (GCQ4) rose slightly.

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