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Stocks Rise In Back And Forth Session; Will Alphabet Spin Off Waymo?

Stocks wrestled to narrow gains in a hard-fought session Tuesday, as investors had confidence tested by both global events and politics at home.

The Nasdaq struggled in and out of negative territory in the last half-hour of trade, but ended up 0.1%. The S&P 500 booked a 0.2% advance. The Dow Jones industrial average also gained 0.2%.  Preliminary data showed volume on both exchanges coming in very close to Monday's levels.

A suicide bombing occurred Monday evening in Manchester, England, just as young fans were exiting a stadium concert. The attack left 22 dead, including the bomber, and reportedly wounded 59. The Islamic terror group ISIS claimed responsibility, and U.K. police on Tuesday arrested a 22-year-old Manchester man in connection with the bombing in what they said was a fast-moving investigation.

Europe's market rose early, but London's FTSE 100 fell late to end the session down 0.2%. Benchmarks in Paris and Frankfurt posted healthy gains, up 0.5% and 0.4%, respectively, boosted by PMI data showing continued strong industrial growth in May.

On the political side, oil prices sagged in very early morning trade on news that a long list of spending cuts proposed by President Trump included halving the amount of oil stored in the Strategic Petroleum Reserve, a move the administration estimates could trim the federal deficit by $16.6 billion. Oil reversed early losses of nearly 1%, with West Texas Intermediate settling up 2% at $51.47 a barrel.

Goldman Sachs (GS) and JPMorgan (JPM) set the pace on among Dow industrials, rising nearly 2% each.

Oilseed processing giant Bunge (BG) soared 16% after the Wall Street Journal reported the agricultural arm of Swiss mining megalith Glencore had approached the White Plains, N.Y.-based company regarding a takeover. Grain handling peer Archers Daniel Midland (AMD) benefited from the news, rising 4% in heavy trade to lead the S&P 500.

Agilent Technologies (A) and Nucor (NUE) also outperformed in the S&P 500 with gains of nearly 5% and 3%, respectively. Agilent reported stronger-than-forecast fiscal second-quarter results late Monday, although Q3 earnings guidance was below analyst targets.

FANG stocks moved generally lower, although Google parent Alphabet (GOOGL) jumped 0.6% and Netflix (NFLX) took a 0.3% gain. A Morgan Stanley note estimated Alpahbet's Waymo self-driving car unit could eventually be worth $70 billion.

IBD 50 name Stamps.com (STMP) posted a 3% gain, moving the stock further up the right side of a three-month cup base.

Icohr Holdings (ICHR), also an IBD 50 stock, climbed 4%. The manufacturer of gas delivery and monitoring systems used by chipmakers is up 14% so far for the week, taking out new highs. Shares have climbed 105% since clearing an IPO base in January.

Among Nasdaq stocks, Alexion Pharmaceuticals (ALXN) tanked 9% , dragging on the Nasdaq 100, after chief financial officer Dave Anderson announced he would retire at the end of August.

AutoZone (AZO) posted the S&P 500's worst loss, down 11% after reporting a broad fiscal third-quarter miss. Advanced Auto Parts (AAP), which is scheduled to report early Wednesday, dropped 5%. O'Reilly Automotive (ORLY) dumped 3%.

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