* Investors looking for catalysts after rally
* Apple shares dip after gaining for 3 days
* Indexes: Dow up 0.2 pct; S&P up 0.2 pct; Nasdaq down 0.1
By Angela Moon
NEW YORK, May 7 U.S. stocks rose on Tuesday,
with the S&P 500 extending its three-day rally to an intraday
high, although profit-taking in technology shares capped gains.
The tech sector, which had been among the gainers for the
past couple of days, turned negative as a decline in Apple
weighed heavily on the Nasdaq composite index.
Shares of First Solar and video subscription
company Netflix were also down, pressuring the index.
The S&P has risen for three straight sessions, extending its
rise for the year to more than 13 percent and eclipsing all of
The gains so far have come on strong corporate results and
accommodative policies from the Federal Reserve, two factors
that may now be priced into markets. Last week's jobs report was
unexpectedly strong, helping to fuel market gains.
"Every rule needs an exception. The age old mantra that says
'Sell in May and go away' is at least giving investors a good
opportunity to set up positions in the event this year it
continues to hold true," said Andrew Wilkinson, chief economic
strategist at Miller Tabak & Co in New York.
"Naturally, it is early days for the month of May, yet we
continue to invite fate by suggesting that 2013 will be the
exception that proved the rule."
Equities this year have gone without a sustained pullback as
investors use any market decline to add to positions. Many
analysts expect markets to trend higher, but some see a
near-term pullback, citing a lack of positive catalysts and
mixed economic data.
The Dow Jones industrial average was up 33.98 points,
or 0.23 percent, at 15,002.87. The Standard & Poor's 500 Index
was up 3.80 points, or 0.23 percent, at 1,621.30. The
Nasdaq Composite Index was down 2.03 points, or 0.05
percent, at 3,391.14.
Apple shares fell 0.7 percent to $457.46 in volatile trading
after rising for the past three sessions. First Solar shares
were off 8.5 percent at $43.69 after reporting earnings below
Wall Street expectations late Monday. Netflix shares were off
1.4 percent at $207.57.
Both Fossil Inc and DirecTV reported
earnings that surged past expectations. Fossil jumped 8.4
percent to $107.32 as one of S&P 500's top percentage gainer,
followed by DirecTV, up 3.8 percent to $60.18.
Earnings have largely been better than expected. Some 67.4
percent of S&P 500 companies have surpassed estimates so far. At
the same time, revenues have been disappointing.
Recent gains have come on strength in technology and banking
shares, two groups that are closely tied to the pace of growth.
A second proxy advisory firm has said that JPMorgan Chase &
Co should have an independent board chairman over its
chief executive officer and should have some new directors. The
stock was up 1.1 percent at $48.71.