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XAutoplay: On | Off Stocks opened to narrow gains, but quickly turned mixed Tuesday, as Nokia (NOK) and Agilent Technologies (A) advanced, oil prices rebounded and auto parts retailers dived in early trade.
The Dow Jones industrial average held a 0.1% gain. The S&P 500 traded effectively flat and the Nasdaq dipped into negative trade.
Global markets generally recovered from an early dip that followed news of a bomb blast just outside a concert in Manchester, England. The terrorist group ISIS reportedly claimed responsibility for the attack, which left 22 dead and 59 injured — a dozen of those aged 16 or under, police said. British authorities called the blast the work of a suicide bomber who was killed in the attack, and said police had arrested a 23-year-old man in south Manchester in connection with the attacks.
Europe’s markets traded higher despite the tragedy, aided by PMI data showing industrial activity continued its strong growth in May. London’s FTSE 100 added 0.2%. Frankfurt’s DAX climbed 0.4% and the CAC-40 in Paris rallied 0.6%.
Oil prices reversed early losses that followed news reports outlining a 10-year, $3.59 trillion package of spending cuts charted by the White House. The plan reportedly proposed selling about half of the Strategic Petroleum Reserve. West Texas Intermediate rose 0.2%, recovering to above $51 a barrel. Oil prices had been gaining strength over the past several weeks, on expectations that the Organization of Petroleum Exporting Countries was set to extend production caps in agreement with Russia when it meets Thursday.
Early Movers: Nike, Toll Bros, Agilient, AutoZone
Apple (AAPL) rose a fraction, after announcing a settlement in its patent suit with Nokia. Terms weren’t disclosed, but the two companies reported a long-term patent deal was included in the outcome. Nokia will provide Apple with certain network infrastructure products and services, and Apple will continue to offer Nokia digital health solutions. Nokia shares surged 6% at the open.
Agilent upshifted 5% at the opening bell. The maker of monitoring and research equipment reported fiscal second-quarter sales and earnings above expectations, although third-quarter guidance was below consensus targets. The move lifted shares just above a three-weeks tight buy point of 58.48.
Luxury home builder Toll Brothers (TOL) advanced 2%, after reporting fiscal second-quarter earnings and revenue well above expectations. The stock is extended from a February breakout, and trading just below prior highs set in December 2015.
China-based streaming video service Momo (MOMO) slipped 2%, after reporting a broad first-quarter revenue and earnings beat. The IBD 50 stock remains extended above a three-weeks tight buy point of 39.35.
On the downside, AutoZone (AZO) tumbled 8% in early action. The auto parts chain reported a steep fiscal third-quarter earnings miss, and 1% revenue ended just shy of analyst targets. The stock has been in a deepening decline since December. Peer Advanced Auto Parts (AAP), expected to report Q1 results Wednesday, dropped 3%. O’Reilly Automotive (ORLY) fell 5%.
On Deck: May PMI, April New Home Sales
Researcher Markit releases its preliminary Purchasing Managers Index for May at 9:45 a.m. ET. New homes sales numbers for April are due out from the National Association of Realtors at 10 a.m. ET. Minneapolis Federal Reserve Bank President Neel Kashkari speaks at 3:15 p.m. ET.