Stocks bobble in light trading
After a wonderful week, the stock markets dipped and wobbled in light trading at the start of the post-July 4 holiday week. Credit: AP, 2011
Stocks wavered between slight gains and losses Tuesday after the Dow Jones industrial average had its best week in two years.
The Dow Jones industrial average fell 13 points to 12,568 in morning trading. The Dow had risen as many as 19 points after the Commerce Department reported an increase in factory orders. The Standard & Poor's 500 index fell 3, or 0.3 percent, to 1,336. The Nasdaq composite index fell 1 point to 2,814. All three indexes were moving in a narrow range.
Trading volume is expected to be light this week. Markets were closed Monday for the July Fourth holiday. Many traders are looking ahead to next week, when aluminum maker Alcoa Inc. becomes the first major U.S. company to report financial results.
Last week the Dow rose 648 points, its best week in two years, after Nike reported strong earnings and Greece cleared its final hurdle before receiving another round of loans. Automakers also reported that their sales rose 7 percent in June, compared to a year ago.
Analysts are optimistic about the corporate earnings reports that will start to come in next week. Earnings from companies in the S&P 500 index are expected to rise 14 percent from the same period a year ago, according to FactSet. Revenue is expected to rise 11 percent.
"There hasn't yet really been a reason to get concerned about corporate America," said Randy Warren, chief investment officer of Warren Financial Service. "It's the rest of the America that's struggling."
Immucor Inc. rose 30 percent after the maker of blood-testing equipment agreed to be bought by private-investment firm TPG Capital in a deal worth $1.97 billion.
Energy Transfer Equity LP also said it would pay a revised $5.1 billion for pipeline company Southern Union Co. The deal trumps a bid from rival Williams Cos., which made an offer valued at about $4.9 billion in late June. Energy Transfer shares rose 0.2 percent, Southern Union shares rose 3 percent, while Williams Cos. fell 1 percent.
Netflix Inc. rose 5.4 percent to $282.40 after announcing that it would expand its online video streaming service to 43 countries in Latin America and the Caribbean.
Reports are due out later this week on the unemployment rate and how many jobs employers added in June.
Rain, snow, sleet for morning commute ... Sentencing in body parts case ... Thomas Valva's mother agrees to settlement ... When Springsteen brought 'Santa' to LI
Rain, snow, sleet for morning commute ... Sentencing in body parts case ... Thomas Valva's mother agrees to settlement ... When Springsteen brought 'Santa' to LI
