By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks finished a choppy trading
session lower on Tuesday as gloomy reports on home prices and
consumer confidence dampened the mood.
A report on home prices showed a dip in December, with the
longer trend indicating a slowdown in price recovery. The U.S.
consumer confidence index dropped by more than expected, reflecting
lower expectations about the economy.
The S&P 500 index (SPX) closed 2.49 points, or 0.1%, lower
at 1,845.12, after briefly topping a previous closing high.
Throughout the session, the benchmark index struggled to lift
through a key technical level, prompting further selling pressure
in the afternoon.
The Dow Jones Industrial Average (DJI) ended the session 27.48
points, or 0.2%, lower at 16,179.66.
The Nasdaq Composite (RIXF) dropped 5.38 points, or 0.1%, to
4,287.59. Read the recap of our stock market live blog.
The pace of U.S. home-price growth slowed down at the end of
2013, but despite this the year saw the fastest calendar-year price
growth in eight years, according to data released Tuesday. "Gains
are slowing from month-to-month and the strongest part of the
recovery in home values may be over," said David Blitzer, chairman
of the index committee at S&P Dow Jones Indices. "The
seasonally adjusted data also exhibit some softness and loss of
momentum."
The U.S. consumer confidence index also dipped primarily because
Americans are less certain about the economy in the next six
months, even though they view the current environment as much
improved, the Conference Board said Tuesday.
"There is a struggle between bears and bulls, because a failure
to break through the 1,850 level yesterday is a bearish sign," says
JJ Kinahan, chief strategist at TD Ameritrade.
"What was interesting about yesterday's rally is that it was not
reinforced by the 10-year Treasury yields, nor by the Vix index.
Bond yields did not move much and the Vix percentage change was not
as pronounced," he added.
Several retailers saw their shares rise after posting
estimate-beating earnings results.
Home Depot Inc. (HD) shares rose 4% after the company reported
fiscal fourth-quarter earnings that beat forecasts. The retailer
also lifted its dividend 21%.
Macy's Inc. (M) shares rose 6.1% after the retailer's
fourth-quarter profit beat estimates.
Shares of Zulily Inc. (ZU) surged 36% after topping earnings
expectations.
Tractor Supply Co. (TSCO) share rose 3.6% after the company said
it has boosted its stock buyback program by $1 billion in a bid to
increase shareholder value.
Shares of electric car maker Tesla Motors Inc. (TSLA) leapt 14%
to close at record high price of $248 on Tuesday, after analysts at
Morgan Stanley raised their price target to $320, citing potential
for the electric auto-maker to disrupt industries outside of its
automotive niche, such as batteries and autonomous vehicles.
Office Depot Inc. (ODP) shares fell 8.8% after the company said
its fourth-quarter earnings loss widened sharply on expenses linked
to its recent merger with OfficeMax Inc. and other one-time
items.
Shares of RealPage Inc. (RP) slumped 23% after the on-demand
software company's fourth-quarter earnings and revenue came in
below its own estimates.
In other markets, the People's Bank of China drained another 100
billion yuan ($16.4 billion) from money markets, which dealt a
heavy blow to Shanghai and Hong Kong stock markets.
The Shanghai Composite Index fell 2.1%. But the Nikkei 225
Average gained more than 1%.
Most European stocks markets close lower, but the benchmark
Stoxx Europe 600 index nudged a late-session rise. April gold(GCH4)
ticked up, finding some modest support from a weaker-than-expected
reading on U.S. consumer confidence. The dollar extended losses
against the euro and the yen.
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