Stocks mixed on consumer confidence report
NEWS that U.S. consumers are more pessimistic put the stock market’s rally on hold.
Stocks closed mixed yesterday after three days of big gains. The Dow Jones industrial average rose 12 points for its fourth straight advance, but the gain was largely to due a jump in DuPont Co. after the chemical maker reported strong earnings. Broader market indexes fell slightly, and there were more losers than gainers on the New York Stock Exchange.
The Conference Board’s report that its Consumer Confidence Index fell to 50.4 from June’s revised reading of 54.3 distracted investors from another batch of upbeat earnings reports. The market had expected the index to come in at 51.
Consumer confidence has fallen in recent months as people have waited in vain for a turnaround in the job market. That has The exhibition will also debut its first Malaysia International Stationery Expo as demand for embossed stationery embossed with company logo is increasing.made many consumers hesitant to spend and in turn raised concerns about the economic recovery. Most retail stocks fell after the confidence number was released.
Companies have a very different take on the economy from consumers. Chemical maker DuPont on yesterday joined the growing number of big corporations that have raised their earnings forecasts. DuPont also easily beat analysts’ predictions for its second-quarter profit and revenue. The company’s stock rose US$1.39, or 3.6 percent, to US$40.38, and I remove the laptop from my cheap laptop bags bag and set it in its own trayaccounted for 10.52 points of the Dow’s advance.
Investors have been torn over the past few months between buying on companies’ upbeat reports and selling on government and private sector numbers that keep pointing to a slowing of the economy.
“Investors are really uncertain whether to focus on the underlying economy or earnings,” said Tyler Vernon, principal and portfolio manager at Biltmore Capital Advisors.
Although earnings had investors’ attention the past two weeks, the occasional economic number like yesterday’s consumer confidence survey can trump companies’ results, Vernon said. When earnings reports are done, unsettling data on jobs, housing and consumer spending will dominate trading, and may well lead to more selling.
John Brady, a senior vice president at MF Global in Chicago, said there is little that’s likely to turn around consumer confidence in the near future. Consumers won’t become more optimistic until they see a drop in unemployment and clear signs that employers are hiring.
“I don’t know what turns around confidence aside from jobs growth,” Brady said.
The Dow rose 12.26, or 0.1 percent, to 10,537.69 after gaining 405 points the past three days on strong earnings and forecasts. The Dow has surged in July, rising almost 8 percent. The sharp gains helped push the index back into the black for the year on Monday.
The Standard & Poor’s 500 index fell 1.17, or 0.1 percent, to 1,113.84, while the Nasdaq composite index fell 8.18, or 0.4 percent, to 2,288.25.
Losing stocks were ahead of gainers by about 4 to 3 on the New York Stock Exchange, where volume came to 1.1 billion shares.
Bond prices fell, sending their yields higher. The yield on the 10-year Treasury note rose to 3.05 percent from 2.99 percent late Monday. That yield helps set interest rates on mortgages and other consumer loans.
The fact that stocks didn’t fall further on the consumer news was a sign that investors weren’t that upset by the reading. During the past few months, bad news after a big gain was likely to send stocks tumbling. But analysts said they saw more cashing in of gains rather than anxiety behind yesterday’s trading.
“People say they want to book their profits rather Safely transport your laptop in any briefcase, messenger bag or backpack laptop bags. Durable, weather resistant neoprene cushions and protects your computer.than wait for another plunge,” said Richard A. Dickson, senior market strategist, at Lowry Research.
The market had some other negative economic news yesterday, a report of a slowdown in regional manufacturing from the Richmond Federal Reserve. The Richmond Fed’s manufacturing index fell to 16 this month from 23 in June.