U.S. stocks were mixed on Tuesday as consumer companies benefited from improved consumer confidence and a slowdown in the pace of home price declines. But the gains were largely offset by slumping energy stocks ahead of oil inventory data. Overall, stocks churned on Tuesday, ending a choppy session, barely lower as the Dow, S&P 500 and Nasdaq broke a six-session winning streak. Major indexes rose modestly in the early going but slipped as the dollar strengthened and tugged on commodity prices. Reports on home prices and consumer confidence did little to excite buyers.
The Dow Jones industrial average fell 1.67, or less than 0.1%, to 10,545.41. The Standard & Poor’s 500 index fell 1.58, or 0.1%, to 1,126.20. The Nasdaq composite index fell 2.68, or 0.1%, to 2,288.40. Volume further declined to a mere 638 million on the NYSE.
Consumer confidence rose in December, according to the Conference Board, hitting its highest point in three months thanks to a better outlook on jobs. Confidence rose to 52.9 from 50.6 previously. While well above the February low of 25.3, the gauge remained well short of the 100 average in the years leading up to the recession.
Separately, a report showed home prices flattened out in October 2009 after rising for four months in a row. The S&P Case Shiller index of prices in the 20 largest metropolitan areas was unchanged in October from the previous month. The y/y decline of the index in October 2009, however, was its lowest since October 2007.
US retail sales climbed during Christmas week as shoppers sought last minute gifts, a trade group said. According to the International Council of Shopping Centers and Goldman Sachs Group Inc., sales at stores open at least a year rose 2.3%, in the week ended December 26, from a year ago.
Energy shares had the biggest decline in the S&P among 10 industries, dropping 0.7%. Chesapeake Energy Corp. and Range Resources Corp. dropped at least 2.6% to lead declines in 34 of 39 energy companies in the S&P 500 index. In other sectors, Bank of America, the largest US lender by assets, slid 1.1% to $15.12. American Express, the biggest US credit card issuer by purchases, fell 0.4% to $40.88. Potash Corp. of Saskatchewan lost 2% to $109.50 after Soleil Securities told clients that it has cut its list price for granular potash by 14%.
GMAC Financial Services is close to receiving about $3.5 billion more of government funding atop the $12.5 billion already received since December 2008. This move comes as many major financial firms have repaid government loans, and points to the Government’s commitment to restoring the health of the US auto industry.
