Suspected suicide bombing in Manchester weighs on sentiment
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U.S. stocks on Tuesday held on to gains after the White House released its 2018 budget proposal, with Wall Street struggling to extend its win streak to a fourth session.
The S&P 500 index , which earlier broke above the 2,400 mark for the first time in a week, remained up 3 points, or 0.1%, at 2,397. Utilities and financial stocks were leading gains, with nine of the benchmark's 11 sectors in the green.
The Dow Jones Industrial Average rose 30 points, or 0.1%, to 20,925, with shares of Nike Inc. (NKE) leading gains. Shares of Goldman Sachs Group Inc. (GS) and J.P. Morgan Chase & Co.(JPM) swung from earlier losses to become leading gainers on the average.
The Nasdaq Composite Index , which saw slight gains and losses during the session, was most recently down 8 points, or 0.1%, at 6,126.
Meanwhile, markets in Europe traded slightly higher on Tuesday after a cautious start following the suspected suicide bombing at an Ariana Grande concert (http://www.marketwatch.com/story/death-toll-rises-to-22-in-suspected-suicide-bombing-in-manchester-2017-05-23) in Manchester, England, that left at least 22 people dead.
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"Geopolitical trauma is disheartening and scary, but the reality is that companies continue to do business. PMI data from the eurozone at six-month high suggests that their economy is gaining steam, all of which bodes well for global equities," said Karyn Cavanaugh, senior market strategist at Voya Financial.
While stocks drifted higher after the White House rolled out its proposed budget, they soon ceded those gains. Robert Pavlik, chief market strategist at Boston Private Wealth, said the release of the budget proposal was a nonissue, seeing that it's highly unlikely to survive in its present form in Congress.
Read: Trump budget forecasts an era of growth not consistently seen since the dot-com era (http://www.marketwatch.com/story/trump-budget-forecasts-rosy-economic-growth-2017-05-22)
"The market doesn't know what to make of it," Pavlik said. "If you're trading stocks on this budget proposal, then you're an idiot."
Rather, the uplift in stocks has a lot to do with President Donald Trump traveling abroad and appearing presidential, and how that's stealing some thunder away from the firing of former FBI Director James Comey and the Russia probes, Pavlik said. When Trump returns stateside, however, the Russia probe news will likely gain traction again and weigh on stocks, especially with Comey testifying before lawmakers after Memorial Day.
Read:Wall Street has declared Trump to be irrelevant (http://www.marketwatch.com/story/wall-street-has-declared-trump-to-be-irrelevant-2017-05-23)
On the economic data front, U.S. flash readings on purchasing managers indexes for services and manufacturing for May were mixed. Manufacturing PMI dipped to an 8-month low, while services PMI rose to a 4-month high.
Stock movers: Shares of Agilent Technologies Inc.(A) rose 4.2% after the maker of scientific equipment late Monday raised its earnings and revenue guidance for 2017.
AutoZone, Inc.(AZO) shares slid 8.5% after disappointing earnings results. Rival Advance Auto Parts, Inc. (AAP) also fell 3.1%.
U.S.-listed shares of Nokia Corp.(NOK) jumped 4.9% after the Finnish company and Apple Inc.(AAPL) settled long-running intellectual property disputes. Financial details of the deal weren't disclosed, but Nokia will receive an upfront cash payment from Apple (http://www.marketwatch.com/story/nokia-apple-end-disputes-enter-patent-license-2017-05-23), with additional revenue during the term of the agreement. Apple shares slipped 0.4%.
Xilinx Inc.(XLNX) shares dropped 6.2% after Wells Fargo downgraded the chip maker (http://www.marketwatch.com/story/xilinxs-stock-rocked-after-modest-outlook-prompts-analyst-downgrade-2017-05-23).
Alexion Pharmaceuticals Inc.(ALXN) shares fell 8.7% following a management shake-up (http://www.marketwatch.com/story/alexions-top-management-shake-up-includes-cfo-who-started-in-december-2017-05-23) at the drugmaker.
Other markets:Oil prices (http://www.marketwatch.com/story/oil-pulls-back-from-1-mo-high-after-trump-budget-proposal-includes-selling-some-us-stockpiles-2017-05-23) rose 0.1% around their one-month high reached on Monday on expectations the Organization of the Petroleum Exporting Countries will extend production cuts into next year.
Read:Oil prices at a crucial crossroad: 'Death cross' or 'golden cross' (http://www.marketwatch.com/story/oil-prices-at-a-crucial-crossroad-death-cross-or-golden-cross-2017-05-23)
Gold prices (http://www.marketwatch.com/story/gold-pulls-back-from-three-week-high-as-dollar-index-firms-2017-05-23) declined 0.5%, and the dollar traded unchanged. The yield on the 10-year Treasury note rose 2 basis points to 2.276%.
Asian stocks closed mixed.
--Sara Sjolin in London contributed to this article.
(END) Dow Jones Newswires
May 23, 2017 13:11 ET (17:11 GMT)