Stocks turned mixed on Tuesday, though the Nasdaq remained on track to set to record a close for its third day in a row.
The S&P 500 was up 0.1% and the Dow Jones Industrial Average fell 0.04%. The Nasdaq added 0.36% after hitting an intraday high of 5,564 earlier in the session.
Trading has been erratic ahead of a press conference Wednesday with President-elect Donald Trump, his first since July. Trump could provide details Wednesday on his policy positions, including infrastructure spending plans and policies intended to boost job growth. Uncertainty over Trump's plans dragged on the U.S. dollar and boosted the price of gold. Gold for February delivery climbed 60 cents to $1,185.50 an ounce, its highest settlement in six weeks.
The Dow has struggled to breach 20,000 in recent days after coming close to the milestone on Friday. The Dow has rocketed higher since the November presidential election as investors grew more confident in Trump's infrastructure spending plans.
"Expectations continue to run high that regulations will be rolled back, allowing corporate earnings to improve and support the higher markets," said Paul Nolte, senior vice president of Kingsview Asset Management. "Of course, the new administration could usher in trade wars with a variety of trading partners, boost inflation by profligate spending that would also push interest rates higher."
Crude oil prices declined on Tuesday after slumping to a three-week low a day earlier. The U.S. Energy Information Administration on Tuesday increased its forecast for U.S. crude output this year to 9 million barrels a day, up from 8.78 million in its previous forecast. The agency also upped its full-year price forecast to $52.50 a barrel, higher than its previous forecast of $50.66.
Commodities have fallen over the past two days after Friday's weekly reading on U.S. drilling activity showed an increase for the 10th consecutive week in a row. Trading has been erratic since the beginning of the year when a production freeze agreement among Organization of Petroleum Exporting Countries went into effect.
West Texas Intermediate crude was down 2.2% to $50.82 a barrel on Tuesday.
Investors were in wait-and-see mode ahead of the kickoff to the fourth-quarter earnings season later in the week. Average earnings for the S&P 500 in the fourth quarter are expected to increase 4.4% from the same period a year earlier. Earnings growth would mark the second straight quarter of gains after the third quarter broke an earnings recession that lasted for four consecutive quarters.
"We believe investors are pricing in a beat for fourth-quarter earnings," said Lindsey Bell, investment strategist at S&P Capital IQ. "EPS growth hasn't fallen short of expectations since first quarter 2009 and the past two quarters had solid beat rates of 4.9% and 3.5%, respectively. As long as investors don't anticipate a greater-than-average beat, fourth-quarter earnings shouldn't rock the market.
Job openings remained unchanged in November in another sign strength in the labor market is holding. Openings held at 5.5 million in November, according to the Job Openings and Labor Turnover Survey. Hiring rose 1.1% to 5.2 million.
Airline stocks were in rally mode after Alaska Air Group(ALK) - Get Report reported a positive December. Overall load factor in December increased 50 basis points to 83.1%. Other airline stocks including JetBlue(JBLU) - Get Report , Delta(DAL) - Get Report and United Continental(UAL) - Get Report climbed.
General Motors(GM) - Get Report spiked 4% in afternoon trading after guiding for above-consensus earnings for fiscal 2017. The automaker anticipates adjusted earnings of $6 to $6.50 a share for the full year, above estimates of $5.71. Growth in North America and China and a comeback in South America should drive earnings growth. GM also authorized a new share repurchase plan worth up to $5 billion, increasing its total buyback program to $14 billion.
Chipotle(CMG) - Get Report rose 5% after same-store sales improved over the fourth quarter, a sign the company is overcoming a food safety scandal in 2015. The burrito chain reported a 20.2% decline in same-store sales in October, a 1.4% drop in November, and 14.7% growth in December. Overall same-store sales are expected to decline by 4.8% in the fourth quarter. Chipotle also authorized a $100 million share buyback program, adding to an existing $2.1 billion repurchase plan.
Pixelworks(PXLW) - Get Report moved 9% higher after guiding for fourth-quarter sales at the high end of its previous range of $15 million to $16 million. The video technology developer also said it expects to turn a profit in the fourth quarter after previously expecting to post a loss or breakeven.
Ascena Retail Group(ASNA) - Get Report slumped 9% after reducing full-year earnings guidance. The owner of Ann Taylor and Dress Barn anticipates fiscal 2017 adjusted earnings between 37 and 42 cents a share, cut from a previous range of 60 cents to 65 cents. Analysts anticipated earnings of 58 cents a share.
Yahoo! (YHOO) shares rose following news CEO Marissa Mayer and company co-founder David Filo will step down from the Internet company's board upon closing of the $4.8 billion sale of its core assets to Verizon Communications(VZ) - Get Report . Mayer assumed the role in 2012. When the Yahoo! sale to Verizon is completed, the remaining Yahoo! assets will be renamed Altaba, which will include a 15% stake in Chinese e-commerce company Alibaba (BABA) - Get Report and a 35.5% stake in Yahoo Japan.
Valeant Pharmaceuticals (VRX) shares gained 6% after the company agreed to sell three skincare lines to L'Oreal (LRLCY) for $1.3 billion, and its Dendreon cancer business to China's Sanpower Group for $820 million.
Zimmer Biomet(ZBH) - Get Report climbed after guiding for a better-than-expected fourth quarter. The company anticipates fourth-quarter sales of $2.013 billion, above consensus of $1.97 billion, while full-year sales are expected to rise 28% to $7.68 billion.
Pluristem Therapeutics(PSTI) - Get Report rose after the U.S. Food and Drug Administration approved a late-stage trial of a treatment of critical limb ischemia, a condition which limits blood flow and often leads to limb amputation. The medical development company said it would push a Phase III study of its PLX-PAD cells toward a goal of marketing approval.
Illumina(ILMN) - Get Report surged nearly 20% after teaming up with Bio-Rad Laboratories(BIO) - Get Report to launch a sequencing solution for single-cell analysis. The solution technology allows researchers to pinpoint individual cells to determine tissue function and disease progression. Illumina also guided for fourth-quarter sales of $619 million, above consensus of $613 million.