Stocks are mixed in mid-afternoon trading on Tuesday, unable to sustain initial gains amid caution ahead of tomorrow's landmark bond offering in Portugal, which may determine if the country needs a bailout. Earlier gains came on the heels of solid earnings from aluminum producer Alcoa (AA).
The major averages all briefly turned negative in recent trading but have moved back to the upside since then. The Dow is currently up 25.53 points or 0.2 percent at 11,662.88, the Nasdaq is up 5.55 points or 0.2 percent at 2,713.35 and the S&P 500 is up 2.92 points or 0.2 percent at 1,272.67.
Having already bailed out Greece and Ireland, stronger members of the euro area are said to be seeking a similar rescue for weak link Portugal.
Portuguese officials insisted this morning that a bail out is not necessary. Portugal will offer up to 1.25 billion euros of 5 and 10-year bonds Wednesday, with the results of the sale likely to gauge confidence in the European Union's ability to handle the situation.
Back in the U.S. corporate earnings have made headlines, as Alcoa posted fourth-quarter earnings of $0.24 per share, above analyst expectations for $0.19 per share. Revenues for the fourth quarter totaled $5.7 billion, up from $5.4 billion in the same period last year.
Homebuilder Lennar (LEN) also reported fourth-quarter earnings of $0.17 per share, well above expectations for earnings of $0.02 per share. Total revenues declined to $860.12 million from $913.74 million in the prior-year quarter but still exceeded estimates of $759.62 million.
Additionally, jewelry retailer Tiffany & Co. (TIF) raised its earnings outlook after a robust holiday shopping season. For 2011, the firm expects earnings to range from $2.83 to $2.88 per share, higher than its previously forecast range of $2.72 to $2.77 per share.
Meanwhile, grocery retailer Supervalu Inc. (SVU) unveiled a loss for the third quarter, hurt by hefty non-cash impairment charges and lower revenues. Further, the company issued fourth-quarter earnings guidance below Wall Street expectations and lowered its full-year outlook.
Dow Components
A majority of the Dow's 30 stocks are trading higher, helping to keep the blue chip index elevated modestly above the unchanged mark.
Bank of America (BAC) is one of the leading percentage gainers in the index, up by 1.6 percent. The upward move has the stock poised to close at its best level in nearly six months.
Intel (INTC), Chevron (CVX), Home Depot (HD) and Hewlett Packard (HPQ) are also up more than 1 percent, further rounding out the Dow's best performers. Notably, HP is up by 1.5 percent and once pace to end the day at its best closing price in five months.
On the other hand, Verizon (VZ) and AT &T (T) are under pressure, with both telecom giants seeing losses of 1.8 percent, falling further away from the more than two-year closing highs set at the start of the year.
Merck (MRK) is also markedly lower, falling by 1 percent and pulling back further off of last week's two-month closing high.
Sector News
Gold, oil service and steel stocks continue to post strong gains, reflecting continued strength among resource stocks despite the volatility in the broader markets.
Healthcare provider stocks are also trading higher after news that sector component Sunrise Senior Living Inc. (SRZ) has closed on significant purchase and sale deals. Sunrise is up by 8 percent following the news, poised for its best close in just over two years.
Housing stocks also remain among the day's strongest gainers after earnings from Lennar boosted the outlook for the sector. Aside from Lennar, Hovnanian Enterprises (HOV) is seeing a notable gain, rising by 3.1percent and on pace for its best close in five months.
Meanwhile, airline stocks are seeing heavy selling as the price of oil has moved higher on the day and the likelihood of a significant snow storm in New York and impending flight cancellations are on the horizon for tomorrow.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region saw a mixed close on Tuesday. Japan's benchmark Nikkei 225 Index slid by 0.3 percent, while Hong Kong's Hang Seng Index rose by 1 percent.
Meanwhile, the major European markets all saw notable gains. The U.K.'s FTSE 100 Index gained 1 percent, while and the German DAX Index French CAC 40 Index rose by 1.2 percent and 1.6 percent, respectively.
In the bond markets, treasuries are on pace to end modestly lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is trading at 3.340 percent, posting a gain of 3.6 basis points.
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