By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks pared earlier losses but
struggled for direction on Tuesday as a report on home prices
showed a dip in December, with the longer trend indicating a
slowdown in price recovery, while consumer confidence index dropped
by more than expected.
The S&P 500 index (SPX) was off less than a point at
1,847.06, a fraction from near record levels reached on Monday.
The Dow Jones Industrial Average (DJI) was 2 points lower at
16,204.07.
The Nasdaq Composite (RIXF) was in positive territory, up less
than a point at 4,293.15. Follow 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 fell to 78.1 in February from
a downwardly revised 79.4. in January, the Conference Board said
Tuesday. Economists polled by MarketWatch had projected the index
to total 80.1.
"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 2.2% after the company reported
fiscal fourth-quarter earnings that beat forecasts. The retailer
also lifted its dividend 21%.
Macy's Inc. (M) shares rose 3.5% after the retailer's
fourth-quarter profit beat estimates.
Shares of Zulily Inc. (ZU) surged 38% after topping earnings
expectations.
Tractor Supply Co. (TSCO) share rose 3.1% after the company said
it has boosted its stock buyback program by $1 billion in a bid to
increase shareholder value.
Toll Brothers Inc. (TOL) posted a surge in profit but said
severe weather impacted sales. Shares in the home builder fell
0.9%.
Shares of electric car maker Tesla Motors Inc. (TSLA) leapt 14%
on Tuesday, following through on the record close set Monday.
Office Depot Inc. (ODP) shares fell more than 13% after the
company said its fourth-quarter earnings loss widened sharply on
expenses linked to its recent merger with OfficeMax Inc. and other
items. Staples, Inc (SPLS) share also dropped 3.8%.
Shares of RealPage Inc. (RP) slumped 22% 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%.
European stocks fell from a six-year closing high on Tuesday as
mining firms slipped on weaker metals prices. April gold (GCH4)
pulled back from a four-month high, while the dollar extended
losses against the euro and the yen.
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