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US stocks little changed as investors weigh economy, Greece

WT24 Desk

NEW YORK — U.S. stocks were little changed on Tuesday as investors weighed the latest economic news and followed negotiations between Greece and its creditors. PVH Corp., the company behind Calvin Klein and Tommy Hilfiger, was among the day’s winners. The stock jumped after it reported earnings that beat the expectations of Wall Street analysts, AP reports.

KEEPING SCORE: The Standard & Poor’s 500 index fell three points, or 0.1 percent, to 2,109 as of 11:09 a.m. Eastern time. The Dow Jones industrial average dropped 10 points, or 0.1 percent, to 18,030. The Nasdaq composite slipped nine points, or 0.1 percent, to 5,076.

SLUGGISH GROWTH: U.S. factory orders tumbled in April, a sign that manufacturers are struggling as the U.S. dollar has strengthened. Orders fell 0.4 percent in April, marking the eighth decline in nine months, the Commerce Department said Tuesday.

THE QUOTE: The stock market is essentially unchanged over the last month, as a bull market that has lasted more than six years appears to be running out of steam. While investors are running out of reasons to buy, they are not pressing reasons to sell either.

Although stocks have climbed this year, gains have slowed after three years of double-digit increases. “It is getting to the point where it’s hard to find attractive investments,” said Jerry Braakman, chief investment officer of First American Trust.

GREECE IN FOCUS: A day after an emergency meeting of Greece’s international creditors, the country submitted a proposal it hopes will seal a deal to secure funds from its lenders. Greek Prime Minister Alexis Tspiras said it is now up Europe’s leaders to accept a deal or risk potentially disastrous consequences for the region. For four months, Greece and its creditors have been locked in a standoff over what reforms the country needs to make to get more loans.

EUROPE’S DAY: In Europe, Germany’s DAX shed 1.1 percent while France’s CAC 40 was down 0.5 percent. Britain’s FTSE 100 fell 0.2 percent.

EUROZONE INFLATION: Consumer prices in the 19-country eurozone are rising for the first time since last November. Official figures Tuesday from the European Union’s statistics agency, Eurostat, showed that consumer prices across the currency bloc were up 0.3 percent in May from the year before. That’s up from the flat reading in April and is the first positive reading since November.

POWER CUT: Utilities led declines for stocks as bond yields climbed for a second day amid signs that global inflation is rising from a very low level.

A report from Europe showed that consumer prices in the 19-country eurozone are rising for the first time since last November. That pushed yields on European government bonds and Treasurys higher, prompting a slump in utilities.

Investors bought dividend-rich utility stocks last year as bond yields plunged, but that trend has reversed as bond yields have edged higher in the last four months.

NICE THREADS: PVH jumped after reporting earnings that beat analysts’ expectations. The stock surged $8.60, or 8.2 percent, to $113.46 after the company said late Monday that strong demand for its Calvin Klein clothing had boosted sales.

The company also said that its board had approved a $500 million stock buyback program.

BONDS: U.S. government bond prices fell, pushing the yield on the 10-year Treasury note up to 2.25 percent from 2.18 percent late Monday. European government bond yields also rose broadly. The yield on the 10-year German government bond rose to 0.69 percent from 0.55 percent, a large move.

CURRENCIES: The euro rose sharply against the dollar, trading at $1.1122, up from $1.0934 the day before. The dollar fell to 124.24 Japanese yen from 124.84 yen.

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