LUV Southwest Airlines Co

By Ellie Ismailidou and Carla Mozee, MarketWatch

U.S. airliners and online-travel brands take a hit

U.S. stocks opened lower Tuesday, as investors took in a flurry of mixed U.S. economic data amid fresh global geopolitical tensions after Turkey shot down a jet fighter claimed by Russia near the Syrian border.

The S&P 500 fell 7 points, or 0.3%, to 2,077. The Dow Jones Industrial Average lost 58 points, or 0.3%, to 17,734 and the Nasdaq Composite traded down 29 points, or 0.6%, to 5,072.

The U.S. economy grew at a somewhat faster 2.1% pace in the third quarter (http://www.marketwatch.com/story/us-third-quarter-gdp-growth-raised-to-21-2015-11-24)instead of the initial reading of 1.5%, the U.S. government said Tuesday morning, mainly due to a jump in the value of business inventories.

But consumer spending, the main engine of U.S. economic growth, grew below expectations (http://www.marketwatch.com/story/third-quarter-gdp-upped-to-21-from-15-2015-11-24), while inflation as measured by the personal consumption expenditure index increased at a 1.3% annual clip, well below the Federal Reserve's 2% target. Meanwhile, consumer confidence fell in November to the lowest level in more than a year.

Tuesday's data were largely priced into the market and confirmed that "the U.S. economy is continuing to grow at a moderate pace that could support an interest-rate hike," said Chris Faulkner-MacDonagh, market strategist at Standard Life Investments.

Meanwhile, adjusted pretax corporate profits fell at a 1.1% annual rate, marking the third decline in the past four quarters. This was taken as a worrisome sign, as analysts thought companies are unlikely to spend and invest at current rates if profits continue to soften.

"The recession we've seen in the earnings of publicly traded companies over the past two quarters--yes, mostly driven by energy--was affirmed," said Peter Boockvar, chief market analyst at The Lindsey Group LLC.

Stock futures came under pressure overnight after a Turkish military jet shot down a warplane near the Syrian border (http://www.marketwatch.com/story/turkey-shoots-down-jet-fighter-near-syrian-border-2015-11-24). The plane violated Turkey's airspace and ignored warnings to return, according to a Turkish government official. Turkish authorities didn't identify the nationality of the jet, but Russia separately said one of its jets had been downed, likely by shelling from the ground.

The news hurt the shares of travel-related companies in the U.S., with shares of United Continental Holdings, Inc. (UAL) falling 2.8% after the open, those of Southwest Airlines Co. (LUV) dropping 2.7% and those of Delta Air Lines, Inc. (DAL) down 2.2%. Shares of global online travel company Expedia, Inc. (EXPE) lost 2.2% while Priceline Group Inc. (PCLN) shares fell 2.4%.

"There was a knee-jerk reaction" in the markets following the reports, said Mike van Dulken, head of research at Accendo Markets, who noted the U.S. on Monday issued a global travel alert on the potential for terrorist attacks.

"That's quite a move to make" on Thanksgiving week, van Dulken said. "But it's a sign of the times. Brussels is likely to be in lockdown next week. When we get events like this highlighting the fragility of situation...it adds fuel to the fire, unfortunately."

U.S. stocks on Monday ended slightly lower (http://www.marketwatch.com/story/commodities-pain-to-give-wall-street-a-headache-at-the-open-2015-11-23), consolidating gains in light volume after a strong week for the key equity benchmarks. The S&P 500 shed 0.1% and the Dow Jones Industrial Average lost 0.2%. The Nasdaq Composite slipped less than 0.1%.

Volume will likely become more subdued as the market heads toward Thanksgiving Day on Thursday. Trading will closed for the holiday and reopen for a half-day on Friday.

Read: When do markets close around Thanksgiving? (http://www.marketwatch.com/story/when-do-markets-close-around-thanksgiving-2015-11-23)

Other markets: European stocks were eyeing a second day of losses after the Turkish downing of the jet, with Russia's Micex index losing 2%. Oil prices gained in the aftermath (http://www.marketwatch.com/story/oil-prices-rise-as-investors-go-bargain-hunting-2015-11-24), up around 2% above $42 a barrel.

In Asia, Australian stocks (http://www.marketwatch.com/story/asian-stocks-under-pressure-from-weak-commodities-prices-2015-11-24) stood out with a 1% loss, as a slide in commodity prices put pressure on the resources-heavy market.

Gold prices found some strength, rising by 1% around $1,077 an ounce. The U.S. dollar was off 0.1% at 99.74 against major rivals.

Data: In other U.S. data, home prices picked up speed in September (http://www.marketwatch.com/story/home-price-gains-accelerate-in-september-spcase-shiller-says-2015-11-24), according to the closely watched S&P/Case-Shiller index.

Meanwhile, the nation's trade deficit also widened in the third quarter, the U.S. government said Tuesday, as imports were revised up but exports were weaker than previously reported.

Stocks to watch: PMC-Sierra Inc. (PMCS) shares dropped 1.8% after the chip company agreed to be purchased by Microsemi Corp (http://www.marketwatch.com/story/microsemi-agrees-to-buy-pmc-sierra-in-25-billion-cash-and-stock-deal-2015-11-24).(MSCC) in a cash-and-stock deal valued at about $2.5 billion. Meanwhile, Microsemi's shares fell 5.2% after the open.

Shares of Hewlett-Packard (HPE) fell around 1%, as the parent of HP Inc. (HPQ) and newly spun-off Hewlett Packard Enterprise Co. (HPE) will report earnings for the last time as a combined company on Tuesday after the bell.

Boulder Brands Inc. (BDBD) shares gained 8.5% after the maker of Smart Balance butter spreads agreed to be acquired by Pinnacle Foods Inc. (PF) for $975 million, including debt.

Shares of Signet Jewelers Limited (SIG) were down 4.4% after the Bermuda-based company's third-quarter results missed expectations (http://www.marketwatch.com/story/signet-jewelers-misses-expectations-in-q3-2015-11-24). Meanwhile, Tiffany & Co. (TIF) shares gained 0.7% after the open, reversing a premarket drop, as the high-end jeweler's quarterly profit and sales fell, (http://www.marketwatch.com/story/tiffany-profit-and-sales-fall-as-strong-dollar-weighs-2015-11-24) weighed by strength in the U.S. dollar.

Campbell Soup Co. (CPB) climbed 3.6% after the bell after raising its fiscal 2016 adjusted earnings view to $2.75 to $2.83 a share.

Chico's FAS Inc. (CHS) fell around 3% after the company said early Tuesday its board approved a new share buyback of up to $300 million (http://www.marketwatch.com/story/chicos-to-buy-back-up-to-300-million-of-shares-raises-quarterly-dividend-33-2015-11-24). The apparel retailer also raised its quarterly dividend 3.3%.

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(END) Dow Jones Newswires

November 24, 2015 10:24 ET (15:24 GMT)

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