MARKET SNAPSHOT: U.S. Stocks Rebound On Economic Data
05/15/2012| 12:53pm US/Eastern
By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks rose Tuesday as generally upbeat economic reports deflected the latest breakdown in Greece's attempts to form a coalition government and stay within the euro zone.
Wall Street is in the process of "wringing out the excess of overoptimism. Once we've done that, we can get back to looking at fundamentals with more realistic eyes, and there are some bright spots: the United States is holding up reasonably well," said Bruce McCain, chief investment strategist at Key Private Bank.
"People are reconciled to the fact that Greece is headed for some sort of cliff, but most feel its far enough out in the future that it's an overhang, but not where the market is focused now," he added.
The Dow Jones Industrial Average (DJI) rose 50.78 points, or 0.4%, to 12,746.13, with J.P. Morgan Chase & Co. (>> JPMorgan Chase & Co.) leading blue-chip gains, up 3.5% following its shareholders' meeting in Florida, with Chief Executive Jamie Dimon surviving an effort to take away his title of chairman of the board, with the vote coinciding with media reports that the Justice Department is probing the bank's $2 billion trading loss.
Weighing most among the Dow-30, Home Depot Inc. (>> The Home Depot, Inc.) shares slid 1.7% after the home-improvement retailer's revenue outlook missed estimates.
The S&P 500 Index (SPX) advanced 5.91 points, or 0.5%, to 1,344.26, with the consumer-discretionary sector faring best among its 10 major industry groups.
TJX Cos (TJX) rallied 7% after the off-price retailer reported increased quarterly profit that beat Wall Street's estimates and hiked its 2012 outlook.
The Nasdaq Composite Index (RIXF) rose 26.20 points, or 0.9%, to 2,928.78.
For every three stocks declining, four gained on the New York Stock Exchange, where 310 million shares traded as of 12:15 p.m. Eastern.
Greece's president said the country would hold new elections as party leaders failed to reach agreement, with the upcoming balloting seen as a referendum on whether to remain in the euro.
U.S. economic reports had retail sales up 0.1% in April, while consumer prices held flat.
The Federal Reserve Bank of New York's gauge of manufacturing activity in the region rebounded in May, while an index of home-builder sentiment rose to a post-recession high.
Also, the Commerce Department reported business inventories rose 0.3% in March.