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Stocks fall on mostly mixed data
AP Business Writer
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AP
NEW YORK – Stocks mostly fell Tuesday as mixed reports on home prices and consumer confidence gave investors little incentive to step into the market.
Rising energy stocks and a decision by IBM Corp. to double its stock-repurchase plan propped up the Dow Jones industrials but the Nasdaq composite index slid after Chinese Internet search company Baidu Inc. warned its revenue could take a hit as it switches its advertising system.
Two stocks fell for every one that rose on the New York Stock Exchange.
Bond prices rose after strong demand at a government debt auction, signaling that investors are still seeking safety.
Stocks rose at the start of trading after a report that home prices in 20 major metropolitan markets increased for the third consecutive month in August.
The Standard & Poor’s/Case-Shiller home price index gained 1 percent in August from July.
However, the gains in home prices couldn’t offset worries that consumers might not be in a mood to spend this holiday season.
The Conference Board said its Consumer Confidence Index fell unexpectedly to 47.7 in October, its second-lowest reading since May. Analysts had predicted a figure of 53.1.
While data on consumer confidence can be volatile, the drop-off still took some of the sheen off corporate profit reports for the July-September quarter, which have been coming in ahead of expectations.
“When I look at the consumer, I think that is the next big test,” said Dave Hinnenkamp, chief executive KDV Wealth Management in Minneapolis. “We’ve passed a big test on the earnings front.”
The Dow rose 14.21, or
0.1 percent, to 9,882.17. The broader Standard & Poor’s 500 index fell 3.54, or 0.3 percent, to 1,063.41, while Nasdaq fell 25.76, or 1.2 percent, to 2,116.09.
Bond prices rose after a Treasury Department auction of
$44 billion in two-year notes drew robust demand. That pushed yields lower. The yield on the two-year note fell to 0.94 percent from 1.04 percent late Monday. The yield on the benchmark 10-year Treasury note fell to 3.45 percent from 3.56 percent.
Stocks have fallen for most of the last week on worries about the economy. The Dow dropped 104 points Monday after a similar slide Friday. It was the first consecutive triple-digit loss for the Dow since mid-June.
The drops have come as a strengthening dollar pushed the prices of commodities lower. The dollar mostly rose again Tuesday but didn’t dominate trading.
Analysts say the coming days could be choppy as traders look for fuel to extend the market’s climb.
The down days are welcome by those who say the advance has been too quick.
The S&P 500 index is up 57.2 percent since March but down 3.1 percent from the start of last week when it closed at its highest level in more than a year.
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