NEW YORK (Dow Jones)--U.S. stocks rose slightly Tuesday, led by such telecommunications companies as AT&T and Verizon Communications following the unveiling of a faster router from Cisco Systems.
The Dow Jones Industrial Average rose 11.86 points, or 0.11%, to 10564.38. AT&T climbed 28 cents, or 1.1%, to 25.56, and Verizon Communications advanced 28 cents, or 0.9%, to 29.91, as Cisco unveiled a smarter, faster router following weeks of building hype over the networking titan's promise to "forever change the Internet." AT&T, a key Cisco customer, said it completed a test with the new router, named CRS-3, which allowed its long-distance Internet backbone to carry data traffic at 100 gigabits per second, roughly 10,000 times faster than the average household cable or DSL connection. Cisco (Nasdaq) ended flat at 26.13.
Boeing was also strong. The stock climbed 55 cents, or 0.8%, to 67.79, after Northrop Grumman said it would drop out of a protracted quest to win a $40 billion contract to build the U.S. Air Force's next generation of aerial-refueling planes, leaving Boeing as the only competitor left standing. Northrop, which is not a Dow component, fell 16 cents, or 0.2%, to 64.
The Nasdaq Composite advanced 8.47, or 0.36%, to 2340.68, a six-month closing high. The Standard & Poor's 500 added 1.95, or 0.17%, to 1140.45, led by its telecom sector. Tuesday's gains were limited as the materials sector fell on declines in metal futures, while consumer stocks and the health-care sector also fell.
"To me, the sentiment is getting a little tired," said David Chalupnik, head of equities at First American Funds. "The market has rebounded and is close to its high for this recovery, so the market is running into technical resistance, and 1150 would be a big number to break through for the S&P 500."
Still, Chalupnik added, "the trend for the market does remain positive. You do have good economic numbers coming out overall, and we expect continued improvement in the numbers although they are kind of muted for a recovery."
General Growth Properties climbed 47 cents, or 3.3%, to 14.55, after the shopping-center operator said it received a proposal from Fairholme Capital Management, one of its largest unsecured creditors, and Pershing Square Capital Management, one of General Growth's largest equity holders and a significant unsecured creditor, to help it emerge from bankruptcy.
Kroger fell 55 cents, or 2.4%, to 22.35. The supermarket operator's fiscal fourth-quarter earnings fell 27% on higher costs, better than analysts expected, although it issued cautious guidance amid an uncertain pace of economic recovery.
Texas Instruments declined 50 cents, or 2%, to 24.19, as the chip maker's first-quarter guidance just wasn't enough to impress investors. Although the company boosted the bottom end of its first-quarter forecast, investors had been hoping for more, such as the company raising the top end of its view.
Invesco reported that assets under management edged up $300 million in February to $412.9 billion from the prior month, but dropped from the end of 2009. Its shares fell 1.09, or 5.2%, to 19.99.
UBS raised its investment rating on Yum Brands to buy from neutral, saying the restaurant company, which owns brands including KFC, Pizza Hut and Taco Bell, is turning the corner. Taco Bell U.S. seems to have better momentum, Pizza Hut's U.S. trends are improving and China's fast-food sales seem to be stabilizing, the firm said. Yum Brands climbed 1.19, or 3.4%, to 36.60.
WebMD Health (Nasdaq) announced plans to buy back another 11% of its shares outstanding, saying doing so represents "a superior alternative" to other uses of the funds. Shares rose 1.50, or 3.4%, to 45.28, approaching the $45.80 offer price.
Navistar International climbed 83 cents, or 1.9%, to 44.25, as its financial unit reached an expanded U.S. financing agreement with GE Capital Corp., boosting the ability of the maker of trucks and engines to extend credit to customers for truck purchases. The accord is expected to take effect in 90 days.
UAL Corp. (Nasdaq) jumped 64 cents, or 3.7%, to 18.16 after its United Airlines said February unit revenue--the amount taken in for each passenger flown a mile on its planes and those of its affiliates--jumped 17% to 19% over the same month a year ago. The No. 3 U.S. airline by traffic also said its February traffic increased 2.1% on a decline of 5.3% in seats offered.
The Dow Jones Industrial Average rose 11.86 points, or 0.11%, to 10564.38. AT&T climbed 28 cents, or 1.1%, to 25.56, and Verizon Communications advanced 28 cents, or 0.9%, to 29.91, as Cisco unveiled a smarter, faster router following weeks of building hype over the networking titan's promise to "forever change the Internet." AT&T, a key Cisco customer, said it completed a test with the new router, named CRS-3, which allowed its long-distance Internet backbone to carry data traffic at 100 gigabits per second, roughly 10,000 times faster than the average household cable or DSL connection. Cisco (Nasdaq) ended flat at 26.13.
Boeing was also strong. The stock climbed 55 cents, or 0.8%, to 67.79, after Northrop Grumman said it would drop out of a protracted quest to win a $40 billion contract to build the U.S. Air Force's next generation of aerial-refueling planes, leaving Boeing as the only competitor left standing. Northrop, which is not a Dow component, fell 16 cents, or 0.2%, to 64.
The Nasdaq Composite advanced 8.47, or 0.36%, to 2340.68, a six-month closing high. The Standard & Poor's 500 added 1.95, or 0.17%, to 1140.45, led by its telecom sector. Tuesday's gains were limited as the materials sector fell on declines in metal futures, while consumer stocks and the health-care sector also fell.
"To me, the sentiment is getting a little tired," said David Chalupnik, head of equities at First American Funds. "The market has rebounded and is close to its high for this recovery, so the market is running into technical resistance, and 1150 would be a big number to break through for the S&P 500."
Still, Chalupnik added, "the trend for the market does remain positive. You do have good economic numbers coming out overall, and we expect continued improvement in the numbers although they are kind of muted for a recovery."
General Growth Properties climbed 47 cents, or 3.3%, to 14.55, after the shopping-center operator said it received a proposal from Fairholme Capital Management, one of its largest unsecured creditors, and Pershing Square Capital Management, one of General Growth's largest equity holders and a significant unsecured creditor, to help it emerge from bankruptcy.
Kroger fell 55 cents, or 2.4%, to 22.35. The supermarket operator's fiscal fourth-quarter earnings fell 27% on higher costs, better than analysts expected, although it issued cautious guidance amid an uncertain pace of economic recovery.
Texas Instruments declined 50 cents, or 2%, to 24.19, as the chip maker's first-quarter guidance just wasn't enough to impress investors. Although the company boosted the bottom end of its first-quarter forecast, investors had been hoping for more, such as the company raising the top end of its view.
Invesco reported that assets under management edged up $300 million in February to $412.9 billion from the prior month, but dropped from the end of 2009. Its shares fell 1.09, or 5.2%, to 19.99.
UBS raised its investment rating on Yum Brands to buy from neutral, saying the restaurant company, which owns brands including KFC, Pizza Hut and Taco Bell, is turning the corner. Taco Bell U.S. seems to have better momentum, Pizza Hut's U.S. trends are improving and China's fast-food sales seem to be stabilizing, the firm said. Yum Brands climbed 1.19, or 3.4%, to 36.60.
WebMD Health (Nasdaq) announced plans to buy back another 11% of its shares outstanding, saying doing so represents "a superior alternative" to other uses of the funds. Shares rose 1.50, or 3.4%, to 45.28, approaching the $45.80 offer price.
Navistar International climbed 83 cents, or 1.9%, to 44.25, as its financial unit reached an expanded U.S. financing agreement with GE Capital Corp., boosting the ability of the maker of trucks and engines to extend credit to customers for truck purchases. The accord is expected to take effect in 90 days.
UAL Corp. (Nasdaq) jumped 64 cents, or 3.7%, to 18.16 after its United Airlines said February unit revenue--the amount taken in for each passenger flown a mile on its planes and those of its affiliates--jumped 17% to 19% over the same month a year ago. The No. 3 U.S. airline by traffic also said its February traffic increased 2.1% on a decline of 5.3% in seats offered.
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