Stocks stall on economic worriesWeakness in consumer confidence, manufacturing hurt sentiment; Dow dips, while S&P and Nasdaq edge up.NEW YORK (CNNMoney.com) -- Stocks finished Tuesday's session mixed as worries about the health of the economy took a toll on investors. The Dow Jones industrial average (down 5.77 to 12,080.73, Charts) finished the session a few points lower. The blue-chip barometer closed at record highs in 13 of the previous 20 sessions.
The broader S&P 500 (up 0.01 to 1,377.94, Charts) index and the tech-fueled Nasdaq (up 2.94 to 2,366.71, Charts) slipped a few points. Both indexes hit multi-year highs last week. Stocks staged a rally in the final hour of trading - a sign that some investors won't be easily scared off. But the overall mood is starting to shift, said Alfred Goldman, chief market strategist at A.G. Edwards. "Investors are focusing on signs that the economy is slowing, which is bad for future corporate earnings," he said. One of the reports dragging on sentiment was the Consumer Confidence index, which slipped in October. The drop surprised Wall Street economists, who were expecting a higher number following the big rally in the stock market and a period of lower oil prices. Adding to the negative mood was the Chicago PMI report. The regional reading on manufacturing fell more than economists had expected. Investors also took in a report that showed employment costs rose more than expected in the third quarter. As of 5:15 p.m. ET, Nasdaq and S&P futures pointed to a slightly negative opening for stocks Wednesday. More economic reports are on tap Wednesday, including the ISM index, a closely watched gauge for the manufacturing industry. Auto sales for October and a report on September construction spending also are due. What moved? The 30-share Dow index struggled, with 18 components declining. Pfizer (Charts) lost 2 percent after the drugmaker released results from a study for an experimental cholesterol drug. The findings raised worries the drug could face approval delays. Verizon (down $0.65 to $37.00, Charts) also continued to slide, one day after the phone company reported earnings that left investors concerned about the strength of its broadband business. Elsewhere, MetLife (down $1.82 to $57.13, Charts) fell 3 percent. The insurer reported upbeat earnings late Monday, but its sales disappointed some. Techs got a lift from PC maker Dell (Charts), which jumped 4 percent after UBS upgraded the stock to "neutral" from "reduce." Other gainers included Eastman Kodak (up $0.65 to $24.40, Charts). Shares climbed almost 4 percent after the company reported a narrower loss from the year-earlier period, beating estimates. Market breadth was mixed. On the New York Stock Exchange, winners barely edged out losers on volume of 1.75 billion shares. On the Nasdaq, decliners beat advancers by a margin of eight to seven on volume of 1.97 billion shares. Treasury prices rallied, lowering the yield on the 10-year note to 4.61 percent, down from 4.67 percent late Monday. Bond prices and yields move in opposite directions. U.S. light crude oil for December delivery added 37 cents to settle at $58.73 a barrel on the New York Mercantile Exchange, rebounding from the previous session's nearly 4 percent decline. COMEX gold for December delivery lost 60 cents to $606.80 an ounce. |
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