Stocks Close Mixed As Traders Digest Latest Earnings News - U.S. Commentary

(RTTNews) - With traders digesting the latest batch of earnings news, stocks fluctuated over the course of the trading day on Tuesday after failing to sustain an initial upward move. The major averages eventually closed mixed for the third consecutive session.

While the Dow dipped 44.12 points or 0.3 percent to 16,414.44, the broader Nasdaq and S&P 500 both closed in positive territory. The Nasdaq climbed 28.18 points or 0.7 percent to 4,225.76, and the S&P 500 rose 5.10 points or 0.3 percent to 1,843.80.

The choppy trading on Wall Street came as the latest earnings news drove individual stocks but did not provide much direction for the broader markets.

Following the holiday on Monday, traders generally seemed reluctant to make any significant moves amid a lack of major U.S. economic data.

The economic calendar remains relatively quiet throughout much of the holiday-shortened week, although reports on weekly jobless claims and existing home sales are likely to attract some attention on Thursday.

Meanwhile, losses by Travelers (TRV), Verizon (VZ), and Johnson & Johnson (JNJ) weighed on the Dow, with all three stocks moving lower even though the companies reported better than expected fourth quarter earnings.

Travelers fell 1.7 percent to its lowest closing level in three months, while Verizon and Johnson & Johnson slid 1.3 percent and 1.1 percent, respectively.

On the other hand, shares of Delta (DAL) surged up by 3.3 percent after the airline reported better than expected fourth quarter earnings.

Sector News

Despite the lack of direction shown by the broader markets, biotechnology stocks saw considerable strength on the day. The NYSE Arca Biotechnology Index jumped by 2.3 percent, reaching a new record closing high.

ImmunoGen (IMGN), Biogen Idec (BIIB) and Incyte (INCY) turned in some of the biotech sector's best performances.

Significant strength was also visible among natural gas stocks, which moved higher along with the price of natural gas. With natural gas for February delivery climbing $0.105 to $4.431 per million BTUs, the NYSE Arca Natural Gas Index advanced by 1.9 percent.

Tobacco, gold, and trucking stocks also showed notable moves to the upside on the day, while steel stocks came under substantial selling pressure.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Tuesday. Japan's Nikkei 225 Index advanced by 1 percent, while Hong Kong's Hang Seng Index ended the day up by 0.5 percent.

Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'s FTSE 100 Index edged down by less than a tenth of a percent, the French CAC 40 Index closed just above the unchanged line and the German DAX Index rose by 0.2 percent.

In the bond market, treasuries showed a lack of direction throughout the session before closing roughly flat. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, edged down by less than a basis point to 2.825 percent.

Looking Ahead

Amid another quiet day on the economic front, trading on Wednesday is likely to be driven by reaction to another batch of earnings news.

Advanced Micro Devices (AMD) and Texas Instruments (TXN) are releasing their quarterly results after the close of today's trading, while Norfolk Southern (NSC), U.S. Bancorp (USB), and United Technologies (UTX) are among the companies due to report before the start of trading on Wednesday.