Mixed Showing On Wall Street; Nasdaq Extends Winning Streak - U.S. Commentary

(RTTNews) - Wall Street generally saw gains on Tuesday, though weak economic news and a negative reaction to Coca-Cola's (KO) quarterly report weighed on the blue chips. Still, the Nasdaq and the S&P 500 finished the day in positive territory. For the Nasdaq, the advance marked its eighth consecutive day of gains.

Going into the session, the mood on Wall Street seemed more skeptical, as investors wondered if the market could continue its recent upswing. Disappointing reports about the manufacturing and the home building sectors contributed to a lackluster start of the session.

However, the recent upward momentum carried the Nasdaq and S&P 500, leaving them modestly higher by the close. The Dow Jones Industrial Average spent the day in negative territory, though it closed well off its lows of the session.

The Nasdaq gained 28.76 points, or 0.7 percent, to close at 4,272.78. The S&P 500 edged up 2.13 points, or 0.1 percent, to end at 1,840.76. The Dow fell 23.99 points, or 0.2 percent, to finish at 16,130.40.

Shares of Coca-Cola weighed on the Dow. The soft drink maker saw its stock slide 3.8 percent on the session following the release of earnings news.

The company revealed earnings for the fourth quarter that dropped 8 percent from last year, despite higher volumes. Also, Coke's revenues came in below the amount market analysts were predicting.

In economic news, a key regional manufacturing survey suggested that growth for New York State manufacturers slowed last month.

The New York Fed's Empire State index fell to 4.48 for February, compared to a reading of 12.51 for January. Economists had expected a reading of 8.5.

Any reading above zero indicates expansion in the sector. January's decline suggests that manufacturing in New York State continued to expand during the month, but at a slower pace.

A separate report suggested sagging confidence in the home building sector. The National Association of Home Builders said its housing market index slipped to 46 in February compared to a reading of 56 in the previous month.

There was strength in the treasury markets on Tuesday. Weak economic data encouraged some investors to seek out safe-haven investments like bonds. The yield on the 10-year note, which moves the opposite direction as price, fell 3.5 basis points to 2.711%.

Turning to overseas markets, European stocks put in a mixed performance on Tuesday. The U.K. posted a modest advance. However, France posted losses, while Germany eked out a thin gain.

A report on U.K. inflation showed a reading below the central bank's target, the first time this had happened since 2009. This helped bolster shares in the country.

The U.K.'s FTSE 100 index advanced 60.43 points, or 0.9 percent, to close at 6,796.43. Germany edged higher by 3.02 points, or less than 0.1 percent, to end at 9,659.78. France's CAC 40 slipped 4.46 points, or 0.1 percent, to close at 4,330.71.

In Asia, stocks held steady on Tuesday, although Chinese shares fell from two-month highs on liquidity worries.

Japan's Nikkei average jumped 3.1 percent on the session. The Bank of Japan kept its monetary easing plan unchanged, but doubled a funding tool to 7 trillion yen to stimulate bank lending. The revision allows financial institutions to borrow funds from the central bank up to an amount that is twice as much as the net increase in their lending.

Looking ahead, the housing market will remain in focus on Wednesday.

The government is slated to release its housing start numbers for January. This measures the rate of new home building projects that have begun in the month. The housing starts figure dropped 9.8% in December, reversing a portion of the 23.1% spike seen in the previous month. Economists are expecting a further moderation for January.

Wednesday will also see the release of the government's producer price index, a key gauge of wholesale inflation.

The Federal Reserve will receive some attention on Wednesday as well. The Fed is scheduled to release minutes from its last policy meeting this afternoon. The report will provide a detailed look at what members of the central bank's policy committee were discussing when they issued their last directive.

A few notable earnings reports are set to be released tomorrow. Before the opening bell, amusement park operator Six Flags (SIX) is set to announce its results. After the closing bell, Avis Budget (CAR), Jack In The Box (JBX) and Marriott International (MAR) are slated to reveal their quarterly figures.