STI 0.28% higher at midday

Dow carves out new 18-month high

The Dow Jones industrial average (INDU) added 11 points, or 0.1%, closing at 10,907.42, the highest finish since 11,143.13 on Sept. 26, 2008. The S&P 500 index (SPX) was little changed. The Nasdaq composite (COMP) added 6 points, or 0.3%.

Stocks rose early in the session as investors welcomed a better-than-expected reading on consumer confidence and took in stride a report showing continued weakness in the housing market.

But the advance petered out near midday after an extended run-up over the last few weeks. Bank shares slipped, dragging down the KBW Bank (BKX) index by 0.8%.

The afternoon saw the major stock indexes bouncing around both sides of the unchanged line before finally turning higher in the last hour. Gains in 3M (MMM, Fortune 500), Verizon Communications (VZ, Fortune 500) and Hewlett-Packard (HPQ, Fortune 500) gave the Dow a boost.

Stocks have risen in six of the last seven weeks as investors looked past worries about a global debt crisis and instead focused on signs of an economic recovery. On Monday, the government said personal spending rose for the fifth month in a row.

The market is in a bit of a tug-of-war right now, with Greece and other euro zone debt issues, questions about higher interest rates, higher taxes and the deficit all on the negative side, said Alan Lancz, president at Alan B. Lancz & Associates.

But Lancz said that on the positive side are the economic strength, the improvement in earnings and, in the short term, the impact of end-of-quarter rebalancing, which tends to bring in new money.

"Consumer confidence today was better than expected, and while that's not enough to be a catalyst for the market, it is enough to keep the tug-of-war going," he said.

The major indexes are also struggling with those 18-month highs, he said. The Dow ended at an 18-month high Tuesday and the Nasdaq and S&P 500 ended at 18-month highs a week ago.

Economy: The Consumer Confidence index rose to 52.5 in March from 46.4 in February, according to a report from the Conference Board, released shortly after the start of trading. Economists expected the index to rise to 51.

Home prices fell in January, according to the S&P/Case-Shiller 20-city index released in the morning. Prices eased 0.4% in January from December levels and were down 0.7% from year-earlier levels, in line with estimates. Prices in December fell 3.1%. After rising for five straight months, prices have now fallen for four in a row.

Apple: Shares of the company surged to an all-time high Tuesday after the Wall Street Journal said late Monday that the company is developing an iPhone for the Verizon (VZ, Fortune 500) network. Currently, the iPhone is only available on the AT&T (T, Fortune 500) network. Apple (AAPL, Fortune 500) shares gained 1.5%, AT&T shares lost 2.1% and Verizon shares added 3%.

The dollar and commodities: The dollar gained versus the euro and the yen, pressuring dollar-traded gold prices. However, oil prices still managed gains.

COMEX gold for May delivery fell $6.80 to settle at $1,103.50 per ounce.

U.S. light crude oil for May delivery rose 20 cents to settle at $82.37 a barrel on the New York Mercantile Exchange.

Bonds: Treasury prices tumbled, raising the yield on the 10-year note to 3.87% from 3.86% late Monday. Treasury prices and yields move in opposite directions.

World markets: In overseas trading, European markets were mixed. Asian markets ended higher, with Hong Kong's Hang Seng index up 0.7% and Japan's Nikkei index up 1%. 

Dow at new 18-month highs

Asian stocks mostly higher

STI 0.46% higher at midday

Asian shares open mixed

Stocks: retreat or recharge?

NEW YORK (CNNMoney.com) -- As a profitable first quarter draws to a close, stocks are in a vulnerable position.

This week brings the focus to perhaps the most persistent worries for investors: unemployment, consumer spending and the strength of the economic rebound. Reports are due on personal income and spending, as well as the labor market.

There should be some good news. On Friday, the government's monthly jobs report is expected to show employers added 190,000 jobs to their payrolls in March. But the unemployment rate is expected to hold steady at 9.7%.

"An improvement in payrolls will be a positive for the market, but it's probably already been anticipated," said Dave Hinnenkamp, CEO at KDV Wealth Management.

He said there are a lot of questions about the outlook for the economy, in terms of what kind of impact the health care bill and the deficit will have longer term.

Also, investors are unclear as to whether the consumer can hold up and if it doesn't, whether business spending can fill the gap. Meanwhile, the first big wave of first-quarter earnings reports aren't due until mid-to-late April.

Hinnenkamp said that some of the choppiness in the stock market last week was due to AT&T (T, Fortune 500), Deere & Co. (DE, Fortune 500) and Caterpillar (CAT, Fortune 500) saying they'll take charges to prepare for additional costs due to the passage of the health care bill.

"Right now we have a pretty fairly valued market and it's going to take another big catalyst to get it moving forward again," he said.

Year-to-date, the Dow is up 4%, the S&P 500 is up 4.6% and the Nasdaq is up 5.6%.

But since bottoming at 12-year lows just over a year ago, the Dow has gained 66% and the S&P 500 has gained 72%. Since bottoming at a six-year low at the same time, the Nasdaq has gained 89%.

Rally hitting resistance: The Dow, S&P 500 and Nasdaq have risen for six of the past seven weeks, all touching 18-month highs. But a well-paced advance has slowed to a crawl recently.

"It feels awfully heavy right now and like the market might be getting ready for a pullback," said Rob Siewert, portfolio manager at Glenmede. "We're getting buffeted by what's happening in Europe with the sovereign debt issues and with what's happening in the U.S. with health care and the jobs market."

A government report Friday showed that GDP grew at a 5.6% annualized rate in the fourth quarter, slower than the initially reported 5.9%, but still strong.

However, that was driven largely by inventory rebuilding, therefore making the number look stronger than it really is, said Scott Armiger, portfolio manager at Christiana Bank & Trust Company. He said that the next few quarters of GDP will also seem stronger than they are as the bulk of the stimulus money kicks in.

Meanwhile, the tax burden and cost of doing business keep rising. In such an environment, stocks are likely to stall or retreat, he said.

"I think we'll see a pullback sooner rather than later," Armiger said. "We could see some selling through the spring and then it picks back up in the summer when the second-quarter earnings are released."

Monday: The February reading on personal income and spending is due before the start of trading.

The Commerce Department report is expected to show that income rose 0.1% in February, according to a consensus of economists surveyed by Briefing.com. Income rose 0.1% in January too. Spending is expected to have risen 0.3% in February following a rise of 0.5% in January.

The Core PCE deflator -- a key measure of inflation that is part of the spending report -- is expected to have risen 0.1% following a flat reading in January.

Passover begins at sundown.

Tuesday: The S&P/Case-Shiller 20-city home price index is expected to have fallen 0.5% in January versus a year earlier. In December, the index plunged 3.1% versus a year earlier.

The Consumer Confidence index from the Conference Board is expected to have risen to 49.0 in March from 46.0 in February, according to forecasts.

Wednesday: Payroll services firm ADP is expected to report that employers in the private sector added 40,000 jobs to their payrolls in March after cutting 20,000 in February.

Outplacement firm Challenger, Gray & Christmas releases its report on announced layoffs in March.

Also on tap, although often less market-moving: the Chicago PMI, a regional reading on manufacturing, and the weekly oil inventory report from the government.

Research in Motion (RIMM) reports quarterly earnings after the close of trade. The blackberry maker is expected to have earned $1.28 per share versus 90 cents a year ago.

Thursday: Weekly and continuing jobless claims are due in the morning.

February construction spending from the Census Bureau is due out after the start of trading. Spending is expected to have fallen 1% after falling 0.6% in January.

The Institute for Supply Management's manufacturing index, due out after the start of trading, is expected to have risen to 57.0 in March from 56.5 in February.

March auto and truck sales are also due throughout the day.

Friday: Stock markets are closed for Good Friday.

However, the government's big March jobs report is still due for release in the morning. The Department of Labor is expected to report that employers added 190,000 jobs to their payrolls in March, after cutting 36,000 in February.

The unemployment rate, generated by a separate survey, is expected to hold steady at 9.7%, unchanged from February.

Average hourly earnings are expected to have risen 0.2% after rising 0.1% in February. 

Asian shares higher at midday

HK shares higher at midday

Stocks surge to 18-month highs

NEW YORK (CNNMoney.com) -- Stocks rallied Tuesday, with the Dow, Nasdaq and S&P 500 ending at new 18-month highs following the release of a better-than-expected existing home sales report that suggests a slow economic rebound.

The Dow Jones industrial average (INDU) rose 103 points, or 1%, ending at 10,888.83, the highest close since 11,143.13 on Sept. 26, 2008.

The S&P 500 index (SPX) gained eight points, or 0.7%, and ended at 1,174.17, its highest close since 1,213.09 on Sept. 26, 2008.

The Nasdaq composite (COMP) rose 20 points, or 0.8%, ending at 2,415.24, its highest close since 2,416.98 on Aug. 18, 2008.

Stocks initially struggled out of the gate Tuesday but turned higher following the release of the housing report, which showed existing home sales fell in February from January levels but still topped estimates.

The report was consistent with other recent readings that show the economy is improving, but at a slow pace. Investors are looking for signs of increased growth in the aftermath of a rally that pushed the Dow 65% off its lows of a year ago to 2010 highs hit on Monday. In that same period, the S&P 500 has gained 72% and the Nasdaq has gained 89%.

Stocks have steadily drifted higher over the last month or so after sliding between mid-January and early February. The Dow has now gained in 9 of the last 10 sessions through Tuesday's close, while the S&P 500 and Nasdaq composite have gained in 8 of the last 10 sessions.

"The recent uptick has been more a function of less bad news rather than a lot of good news," said Dean Barber, president at Barber Financial Group.

He said that unemployment, the weakness in housing and the possible spread of Greece's debt problems remain worries for investors, but they've been pushed aside for the time being.

Housing: Existing home sales fell to a 5.02 million unit rate in February from a 5.05 million unit rate in January, according to a National Association of Realtors report released Tuesday. Economists surveyed by Briefing.com thought sales would fall to a 5 million unit rate.

The continued weakness in the housing market has been one of the main worries for investors as they look for signs this year that the economic recovery has some durability. While the report showed a slight decline from the previous month, it still managed to beat forecasts despite severe snowstorms in much of the nation.

Washington: On Tuesday, President Obama signed into law a health care bill that will extend coverage to 32 million more people, require all Americans to have coverage and will prevent companies from denying coverage based on pre-existing conditions.

Stocks rallied Monday after Congressional approval of the bill removed the uncertainty that has surrounded its passage for months.

After Monday's close, the Senate Banking Committee approved a regulatory reform bill put forth by Sen. Christopher Dodd, D-Conn., passing it on to the full Senate for the vote.

On Tuesday, Treasury Secretary Timothy Geithner said that an overhaul of mortgage companies Fannie Mae and Freddie Mac could shape up later this year, although the process of redesigning government-backed mortgage financing is going to be complicated.

Company news: KB Home (KBH) reported a narrower quarterly loss versus a year earlier that was nonetheless weaker than analysts' estimates, with lower revenue that also missed expectations. The homebuilder said prices and demand for its houses fell in the first quarter. Shares slipped 1.7% Tuesday.

Stock gains were broad based Tuesday, with all but two of the Dow's 30 components rising.

Component Caterpillar (CAT, Fortune 500) rose after a Wells Fargo analyst said the stock is a good long-term buy. Other Dow gainers included IBM (IBM, Fortune 500), Coca-Cola (KO, Fortune 500), 3M (MMM, Fortune 500) and Procter & Gamble (PG, Fortune 500).

Market breadth was positive. On the New York Stock Exchange, winners beat losers seven to three on volume of 985 million shares. On the Nasdaq, advancers topped decliners by two to one on volume of 2.31 billion shares.

The dollar and commodities: The dollar rallied versus the euro and the yen.

U.S. light crude oil for May delivery rose 31 cents to settle at $81.91 a barrel on the New York Mercantile Exchange.

COMEX gold for May delivery rose $4.20 to settle at $1,103.70 per ounce.

Bonds: Treasury prices fell, raising the yield on the 10-year note to 3.67% from 3.66% late Monday. Treasury prices and yields move in opposite directions.

World markets: In overseas trading, European markets ended higher. London's FTSE rose 0.5%, France's CAC 40 rose 0.6% and Germany's DAX added 0.5%. Asian markets were mixed, with Hong Kong's Hang Seng index up 0.3% and Japan's Nikkei down 0.5%.  

HK shares open higher

Dow at 18-month high

NEW YORK (CNNMoney.com) -- Stocks gained Monday, with health care shares leading the way as Congressional approval of a sweeping reform bill removed the uncertainty that has surrounded its passage for months.

The Dow Jones industrial average (INDU) rose 44 points, or 0.4%, ending at a fresh 18-month high. The S&P 500 index (SPX) gained 6 points, or 0.5%, and closed just shy of the 18-month high hit last week. The Nasdaq composite (COMP) gained 21 points, or 0.9%, closing at a more than 18-month high.

Stocks fell in the first minutes of the session on renewed questions about Greece's ability to repay its debt. But the market soon erased losses and turned higher as investors began snapping up biotech, health care provider and hospital sector stocks in the wake of the House of Representatives' approval of the health care bill.

Many of those stocks have been stuck in narrow trading ranges over the last year amid questions about the breadth of any bill and whether or not Congress would approve it. But the removal of that uncertainty seemed to help lift the stocks beyond those ranges.

"The bill is being received well so far, but we have to see what comes out of it down the road," said Stephen Carl, head equity trader at Williams Capital Group.

He said it is too soon to determine exactly how it might impact different sectors and groups.

Some concerns about Greece lingered after reports showed that influential member nation Germany might not go along with European Union efforts to help the country cut down its debt. But those concerns were overshadowed by the focus on health care.

Stocks slipped Friday at the end of another up week for stocks. The Dow, Nasdaq and S&P 500 have all advanced in four of the last five weeks. All three major indexes ended at roughly 18-month highs in Thursday's session.

"We're seeing a little euphoria now, but it could level off to the downside in the short term," said Carl. He said that markets will have a better sense of direction after the release of the economic news due later this week, including the existing home sales index on Tuesday and the durable goods orders report on Wednesday.

After the close, the Senate Banking Committee approved a regulatory reform bill put forth by Sen. Christopher Dodd, D-Conn., passing it on to the full Senate for the vote.

Health care: After months of contentious debate, the House passed a health care overhaul Sunday night that President Obama is expected to sign into law Tuesday. The Senate already passed the measure late last year.

The broad-based bill will extend coverage to 32 million more people, require all Americans to have coverage, and will prevent companies from denying coverage based on pre-existing conditions. Medicare prescription drug coverage will be expanded and people will be given subsidies to help pay for insurance.

The bill is expected to cost $940 billion over 10 years. (For highlights of the plan, click here.)

Health care stock movers: Hospital operators advanced, as they are seen benefiting from the increased number of customers. Tenet Healthcare (THC, Fortune 500) gained 9% and Community Health Systems (CYH, Fortune 500) rallied 6%

Programs that focus on Medicaid gained as well, with Amerigroup (AGP) gaining 1% and Molina Healthcare (MOH) rising 3.6%.

Among other movers in the sector, insurers Cigna (CI, Fortune 500) and Aetna (AET, Fortune 500) were a bit higher and UnitedHealth (UNH, Fortune 500), WellPoint (WLP, Fortune 500) and Humana (HUM, Fortune 500) were lower.

Dow pharmaceutical stocks Merck (MRK, Fortune 500) and Pfizer (PFE, Fortune 500) both gained. Other Dow gainers included American Express (AXP, Fortune 500), Boeing (BA, Fortune 500), Caterpillar (CAT, Fortune 500), DuPont (DD, Fortune 500), Hewlett-Packard (HPQ, Fortune 500) and McDonald's (MCD, Fortune 500).

Google: The company said Monday that it is redirecting users of its China search engine to its Hong Kong search engine as a means of providing uncensored content.

However, Google said it was going to continue its research and development work in China and maintain its lucrative ad sales business.

The U.S. company said in January that it was no longer willing to censor its Chinese engine and that it would pull out of the country unless a solution could be reached. The announcement followed a cyberattack on e-mail accounts that targeted human rights activists.

Google (GOOG, Fortune 500) shares inched lower Tuesday.

The dollar and commodities: The dollar fell versus the euro and the yen.

U.S. light crude oil for April delivery rose 57 cents to settle at $81.25 a barrel on the New York Mercantile Exchange.

COMEX gold for April delivery fell $8.10 to settle at $1,099.50 per ounce.

Bonds: Treasury prices rose, lowering the yield on the 10-year note to 3.66% from 3.69% late Friday. Treasury prices and yields move in opposite directions.

World markets: In overseas trading, European markets ended little changed. The London FTSE lost a few points, the French CAC 40 added a few points and the German DAX added a few points. In Asia, Hong Kong's Hang Seng index fell 2%; Tokyo was closed for a holiday.

HK shares lower at midday

STI lower at midday