US stocks continued their downward run as jittery investors sold off stocks after a gauge of consumer confidence witnessed a surprise drop. The unexpected decline initiated concerns over consumer demand for the upcoming key holiday season. An overall weakness in tech shares also hurt sentiments even as energy shares showed strength.
Earlier, IBM (NYSE:IBM) helped lead an advance after the company’s board approved $5 billion in funds for additional buybacks. A successful auction of $44 billion two-year notes sent Treasuries higher. The dollar index rose. Meanwhile, crude prices broke a three-day losing streak advancing 1.1% to close at $79.55, after BP (NYSE:BP) reported better-than-expected profits.
Nonetheless, the Dow Jones industrial average eked out gains Tuesday, closing up 14 points, or 0.1%, at 9882, as American Express (NYSE:AXP) climbed 3.1%, ExxonMobil (NYSE:XOM) rose 2.3%, Chevron (NYSE:CVX) added 1.5%, and Verizon (NYSE:VZ) rose 2.0%. On the NYSE, declining issues beat those that advanced by a two-to-one margin. The S&P500 retreated 0.3% to finish at 1063, while the NASDAQ dropped 1.2% to close at 2,116 points.
Yesterday, JP Morgan’s (NYSE:JPM) CEO Jamie Dimon noted the chance for “financial Armageddon is over,” and the economy and financial markets have stabilized. However, he was cautious on the employment front, warning unemployment could reach 10% next month and continue to climb over the next two months.
Yesterday’s tally on the third quarter earnings season showed 80% of the 230 SP500 firms reported topped estimates, with 13% falling below the marks set by analysts. Profits are on track to note an 18.1% drop from a year ago. Corporate results are expected today from International Paper (NYSE:IP), ConocoPhillips (NYSE:COP), Aetna (NYSE:AET), Colgate-Palmolive (NYSE:CL), and Sprint (NYSE:S).
