* Coca-Cola and Johnson & Johnson rally after results
* Tesla and Netflix slide, but Twitter jumps after deal
* Intel and Yahoo rise after the bell on results
* Dow up 0.6 pct; S&P 500 up 0.7 pct; Nasdaq up 0.3 pct
(Updates to close, adds gains in Intel and Yahoo after the bell
on results )
By Ryan Vlastelica
NEW YORK, April 15 U.S. stocks ended a volatile
session higher on Tuesday, lifted by gains in such blue-chip
names as Coca-Cola and Johnson & Johnson, though persistent
weakness in momentum names limited the Nasdaq's advance.
Coke and J&J, both Dow components, climbed after their
results while recent outperformers fell, a sign that investors
were rotating from growth stocks into value ones. In recent
weeks, high-growth stocks have been under pressure after a
meteoric rise in their prices took valuations to levels that
The three major U.S. stock indexes fell for much of the
session before rebounding in afternoon trading. The Nasdaq moved
in a 108.77-point range, and at its lows of the day, it was
within 0.3 percent of 3,934.53, the level that represents a 10
percent drop from its recent intraday peak, hit on March 6.
"The market is trying to stabilize, and investors are
looking for high-quality names that have stability in their
earnings and prices," said Bruce McCain, chief investment
strategist at Key Private Bank in Cleveland, Ohio. "This
afternoon's move is part of that same flight to quality."
Coca-Cola Co jumped 3.7 percent to $40.18 as one of
the S&P 500's biggest gainers after the world's largest beverage
maker reported better-than-expected quarterly revenue, helped by
strong sales in China. Johnson & Johnson rose 2.1
percent to $99.20 after the pharmaceuticals and consumer
products company posted earnings that beat expectations and
raised its full-year profit view.
Among the most active "momentum" names, shares of electric
car maker Tesla Motors Inc fell 2.1 percent to $193.91
and shares of online movie rental company Netflix Inc
dropped 1.6 percent to $326.27. Intuitive Surgical
shares fell 1.9 percent to $417.09.
"We're going through a period of rolling corrections, which
will consolidate the high-growth names that did so great last
year," said Hayes Miller, head of asset allocation in North
America at Baring Asset Management in Boston. "I don't read
anything systemic into the action, as seen by the gains in more
defensive areas. The losses should remain contained."
After the closing bell, Intel Corp shares rose 3
percent to $27.56 in extended-hours trading after the chipmaker
reported its first-quarter results and gave an outlook.
Yahoo Inc shares rose 1.4 percent to
$34.70 after the bell following the company's results.
The Dow Jones industrial average rose 89.32 points,
or 0.55 percent, to end at 16,262.56. The Standard & Poor's 500
Index gained 12.37 points, or 0.68 percent, to finish at
1,842.98. The Nasdaq Composite Index added 11.47 points,
or 0.29 percent, to close at 4,034.16.
In the latest economic snapshot, a gauge of manufacturing in
New York state grew at a much slower rate in April than it did
in March, coming in far below expectations.
The U.S. Consumer Price Index increased 0.2 percent in March
as food and housing rental costs rose, although inflation
pressures remained generally benign.
S&P 500 companies' first-quarter earnings are projected to
have increased just 1 percent from a year ago, Thomson Reuters
data showed. The forecast is down sharply from the start of the
year, when profit growth was estimated at 6.5 percent.
Twitter Inc shares surged 11.4 percent to close at
$45.52 after the company said it bought social data provider
Gnip for an undisclosed amount.
Aaron's Inc shares tumbled 4 percent to end at
$29.25 after the rent-to-own furniture and electronics retailer
said it had rejected a $2.3 billion takeover offer from a major
shareholder and instead acquired a retail credit financing firm
for about $700 million.
Barcode printer maker Zebra Technologies said it
would buy Motorola Solutions Inc's enterprise business,
which makes rugged mobile computers, tablets and barcode
scanners, for $3.45 billion in cash. Motorola Solutions shares
declined 0.6 percent to end at $63.37. Zebra shares tumbled 10.1
percent to close at $61.39.
About 58 percent of stocks traded on the New York Stock
Exchange closed higher for the day, while about 50 percent of
Nasdaq-listed shares ended lower.
About 7.62 billion shares traded on all U.S. platforms,
according to BATS exchange data, above the month-to-date average
of 6.87 billion.
(Editing by Jan Paschal)