By Anora Mahmudova, MarketWatch
NEW YORK (MarketWatch) -- U.S. stocks edged higher 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. The U.S. consumer confidence index dropped by more than
expected.
The S&P 500 index (SPX) was up a point at 1,849.00, above
its record closing reached on Jan 15.
The Dow Jones Industrial Average (DJI) was 18 points, or 0.1%,
higher at 16,225.25.
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 3% after the company reported
fiscal fourth-quarter earnings that beat forecasts. The retailer
also lifted its dividend 21%.
Macy's Inc. (M) shares rose 4.9% after the retailer's
fourth-quarter profit beat estimates.
Shares of Zulily Inc. (ZU) surged 40% after topping earnings
expectations.
Tractor Supply Co. (TSCO) share rose 2.4% 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
0.4%.
Shares of electric car maker Tesla Motors Inc. (TSLA) leapt 18%
on Tuesday, following the record close set Monday.
Office Depot Inc. (ODP) shares fell more than 10% 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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