Dow now at 10,564, up 17 points.
NEW YORK (AP) — Stocks fluctuated in a narrow range Tuesday
after reports on home prices and consumer confidence came in
largely as expected, showing a gradual improvement in the
economy.
Major indexes had risen modestly in the early going, but were mixed
in afternoon trading as the dollar strengthened and tugged on
commodities prices. A stronger dollar makes commodities more
expensive for foreign buyers. Energy and material stocks fell in
response to the drop in commodities.
Trading was quiet, as it has been in recent days. Many investors
were taking vacation between Christmas and New Year’s Day. Even in
light volume though, the market has managed to climb. The Standard
& Poor’s 500 index has posted gains for six straight days, rising
2.3 percent to reach a new high for the year.
Earlier Tuesday, the Conference Board said its index of consumer
confidence rose to 52.9 in December from 49.5 in November. That was
slightly better than the reading of 52 economists had forecast.
The index is still a long way from what is considered healthy. A
reading of 90 or more signals a solid economy. However, the index
has risen significantly from a historic low of 25.3 in
February.
A report on home prices also showed a slight improvement. The
Standard & Poor’s/Case-Shiller’s home price index rose for a fifth
straight month in October, edging up 0.4 percent. The index was off
7.3 percent from October last year, roughly in line with
expectations.
Analysts said there were few surprises in the economic data to
drive the market one way or the other.
“The reports we’re seeing broadly reinforce the expectations we’ve
had,” said Jim Baird, partner and chief investment strategist for
Plante Moran Financial Advisors in Kalamazoo, Mich. “It’s slow and
steady; It’s not explosive improvement.”
In early afternoon trading, the Dow Jones industrial average rose
0.12, or 0.1 percent, to 10,557.20. The S&P 500 index slipped
0.62, or 0.1 percent, to 1,127.16, while the Nasdaq composite index
fell 2.49, or 0.1 percent, to 2,288.59.
Interest rates were little changed following a successful auction
of $42 billion of five-year notes. The Treasury Department is
issuing a total of $118 billion of debt this week as part of its
ongoing efforts to fund its stimulus programs. With so much debt
flooding the market, there’s been concern this year that demand
would diminish. Most auctions though have been able to attract
decent demand.
The yield on the 10-year Treasury note, which is used as a
benchmark for consumer loans, held steady at 3.85 percent.
The dollar reversed an early slide and moved higher against other
currencies. Oil prices fell 4 cents to $78.73 a barrel on the New
York Mercantile Exchange. Gold prices also fell.
Reports showing an increase in durable goods orders and a decline
in claims for unemployment benefits helped spur the market higher
last week. On Monday, investors were encouraged by a jump in retail
sales.
Tim Speiss, chairman of Personal Wealth Advisors practice at Eisner
LLP in New York, said he expects to see the market build on its
recent gains at the start of the new year and through the first
quarter.
“We’re going to be building momentum,” he said.
Advancing stocks were roughly even with those that fell on the New
York Stock Exchange, where volume came to a low 303.5 million
shares.
In other trading, the Russell 2000 index of smaller companies fell
0.85, or 0.1 percent, to 632.90.
Overseas, Japan’s Nikkei stock average inched up 0.04 percent and
Hong Kong’s Hang Seng index gained 0.1 percent. Britain’s FTSE 100
rose 0.6 percent, Germany’s DAX index added 0.1 percent, and
France’s CAC-40 rose 0.2 percent.
