US stocks: Wall Street edges up, Dow set for another strong Tuesday

NEW YORK - U.S. stocks inched higher, putting the Dow on track for yet another strong Tuesday, but market participants say the direction could easily turn as the market gets more clues on when the Federal Reserve may reduce its stimulus efforts.

 

If the Dow ends the session higher, it will be the 21st Tuesday for the Dow to gain, the longest winning streak for any day of the week since 1900.

 

"We are seeing the continuation of yesterday's relief rally after the big selloff last week. We are still in relief buying mode but volatility has ticked up significantly here," said Ryan Detrick, senior analyst at Schaeffer's Investment Research in Cincinnati, Ohio.

 

Detrick noted that the market is starting to see "internals deteriorate when the indexes are moving higher." The number of stocks hitting 52-week highs that quickly turn around to end the week lower has grown sharply in the past week.

 

"Although this doesn't suggest a major correction, it is a near-term warning sign," Detrick said.

 

Tuesday's session was expected to be volatile as several Federal Reserve speakers were speaking in public, including Fed Governor Sarah Bloom Raskin, Kansas City Federal Reserve Bank President Esther George and Dallas Federal Reserve Bank President Richard Fisher.

 

Intraday swings have increased in the past week as concerns rose about the likelihood of the Fed's reducing its bond-buying program to aid the economy sooner than expected.

 

Many investors are also likely to hold off big bets until the non-farm payrolls report due on Friday shows the employment situation, the key factor for the Fed's decision on monetary policy. On Wednesday, the market will get an anecdotal look at economic conditions from the Fed's Beige Book.

 

The Dow Jones industrial average was up 24.96 points, or 0.16 percent, at 15,278.99. The Standard & Poor's 500 Index was up 2.54 points, or 0.15 percent, at 1,642.96. The Nasdaq Composite Index was up 6.65 points, or 0.19 percent, at 3,472.01.

 

In corporate news, web-based software maker Salesforce.com Inc said it would buy marketing software provider ExactTarget for $2.5 billion. Salesforce.com is seeking to build a marketing platform that will tap increasing use of mobile devices and social networks. Salesforce.com shares lost 3.9 percent to $39.41.

 

U.S. regulators proposed designating American International Group Inc, Prudential Financial Inc and GE Capital for heightened regulatory oversight in a long-anticipated move aimed at cracking down on risks to markets.

 

FedEx Corp said on Monday it will permanently retire or will hasten the retirement of 86 aircraft and more than 300 engines as the package delivery company modernizes its fleet. The stock was up 0.8 percent at $98.49.

 

Earlier, data showed the U.S. trade deficit widened in April as a rise in imports offset a rebound in exports, suggesting that trade remained a drag on economic growth as the second quarter started. — Reuters