By Wallace Witkowski and Anora Mahmudova, MarketWatch
Nasdaq Composite sees up-and-down trade
U.S. stock-index benchmarks on Tuesday held on to gains after
the White House released its 2018 budget proposal, with Wall Street
on track for a fourth session amid mixed economic data and an
updraft in shares of financial firms.
The S&P 500 index , which earlier broke above the 2,400 mark
for the first time in a week, rose nearly 6 points, or 0.2%, at
2,399. Financial and utilities stocks were leading gains, with nine
of the benchmark's 11 sectors in the green.
The Dow Jones Industrial Average rose 60 points, or 0.3%, to
20,954, with shares of Goldman Sachs Group Inc. (GS) and J.P.
Morgan Chase & Co.(JPM) swinging from earlier losses in the
session to become leading gainers on the average. Those bank shares
were contributing about 40 points to the blue-chip gauge.
The Nasdaq Composite Index , which saw slight advances and
losses during the session, was most recently up 3 point,s or less
than 0.1%, at 6,137.
Meanwhile, markets in Europe traded slightly higher on Tuesday
after a cautious start following the suspected suicide bombing at
an Ariana Grande concert
(http://www.marketwatch.com/story/death-toll-rises-to-22-in-suspected-suicide-bombing-in-manchester-2017-05-23)
in Manchester, England, that left at least 22 people dead.
"Geopolitical trauma is disheartening and scary, but the reality
is that companies continue to do business. PMI data from the
eurozone at six-month high suggests that their economy is gaining
steam, all of which bodes well for global equities," said Karyn
Cavanaugh, senior market strategist at Voya Financial.
While stocks drifted higher after the White House rolled out its
proposed budget, they soon ceded those gains. Robert Pavlik, chief
market strategist at Boston Private Wealth, said the release of the
budget proposal was a nonissue, seeing that it's highly unlikely to
survive in its present form in Congress.
Read: Trump budget forecasts an era of growth not consistently
seen since the dot-com era
(http://www.marketwatch.com/story/trump-budget-forecasts-rosy-economic-growth-2017-05-22)
"The market doesn't know what to make of it," Pavlik said. "If
you're trading stocks on this budget proposal, then you're an
idiot."
Rather, the uplift in stocks has a lot to do with President
Donald Trump traveling abroad and appearing presidential, and how
that's stealing some thunder away from the firing of former FBI
Director James Comey and the Russia probes, Pavlik said. When Trump
returns stateside, however, the Russia probe news will likely gain
traction again and weigh on stocks, especially with Comey
testifying before lawmakers after Memorial Day.
Read:Wall Street has declared Trump to be irrelevant
(http://www.marketwatch.com/story/wall-street-has-declared-trump-to-be-irrelevant-2017-05-23)
On the economic data front, U.S. flash readings on purchasing
managers indexes for services and manufacturing for May were mixed.
Manufacturing PMI dipped to an 8-month low, while services PMI rose
to a 4-month high.
Stock movers: Shares of Agilent Technologies Inc.(A) rose 3.6%
after the maker of scientific equipment late Monday raised its
earnings and revenue guidance for 2017.
AutoZone, Inc.(AZO) shares slid 10% after disappointing earnings
results. Rival Advance Auto Parts, Inc. (AAP) also fell 3.8%.
U.S.-listed shares of Nokia Corp.(NOK) jumped 5.6% after the
Finnish company and Apple Inc.(AAPL) settled long-running
intellectual property disputes. Financial details of the deal
weren't disclosed, but Nokia will receive an upfront cash payment
from Apple
(http://www.marketwatch.com/story/nokia-apple-end-disputes-enter-patent-license-2017-05-23),
with additional revenue during the term of the agreement. Apple
shares slipped 0.4%.
Xilinx Inc.(XLNX) shares dropped 5.7% after Wells Fargo
downgraded the chip maker
(http://www.marketwatch.com/story/xilinxs-stock-rocked-after-modest-outlook-prompts-analyst-downgrade-2017-05-23).
Alexion Pharmaceuticals Inc.(ALXN) shares fell 9% following a
management shake-up
(http://www.marketwatch.com/story/alexions-top-management-shake-up-includes-cfo-who-started-in-december-2017-05-23)
at the drugmaker.
Bunge Ltd. (BG) shares jumped 14% following a report that
Glencore PLC(GLEN.LN) has made a takeover approach
(http://www.marketwatch.com/story/grain-trader-bunges-shares-surge-16-on-report-of-glencore-approach-2017-05-23)
for the grain trader.
Other markets:Oil prices
(http://www.marketwatch.com/story/oil-pulls-back-from-1-mo-high-after-trump-budget-proposal-includes-selling-some-us-stockpiles-2017-05-23)
rose 0.6% to their one-month high reached on expectations the
Organization of the Petroleum Exporting Countries will extend
production cuts into next year.
Read:Oil prices at a crucial crossroad: 'Death cross' or 'golden
cross'
(http://www.marketwatch.com/story/oil-prices-at-a-crucial-crossroad-death-cross-or-golden-cross-2017-05-23)
Gold prices
(http://www.marketwatch.com/story/gold-pulls-back-from-three-week-high-as-dollar-index-firms-2017-05-23)
declined 0.5% to settle at $1,255.50 an ounce, and the dollar
traded 0.2% higher. The yield on the 10-year Treasury note rose 1
basis point to 2.265%.
Asian stocks closed mixed.
--Sara Sjolin in London contributed to this article.
(END) Dow Jones Newswires
May 23, 2017 14:57 ET (18:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.