US stocks mixed after confidence data disappoints

Tuesday, 26 June 2012 20:59

Posted by Asad Naeem

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NEW YORK: US stocks turned mixed Tuesday as investors digested data on rising home prices and falling consumer confidence.

The main indexes opened with modest gains, but lost steam after the Conference Board reported Americans grew more pessimistic about the economy for the fourth consecutive month in June.

"The report does not seem to suggest any significant change in recent economic trends and we think it consistent with modest growth and relatively sluggish job creation," RDQ Economics analysts said.

The Dow Jones Industrial Average was down 16.73 points (0.13 percent) to 12,485.93 by 1420 GMT.

The S&P 500-stock index edged up 0.69 point (0.05 percent) to 1,314.41, while the tech-rich Nasdaq rose 4.81 (0.17 percent) to 2,840.97.

Wall Street investors also weighed positive news from the battered housing market. The S&P Case-Shiller price index for 20 major US cities rose for the third straight month in April.

Wells Fargo Advisors said meanwhile that European concerns "are still an overhang following Moody's downgrade of 28 Spanish banks."

Among stocks in focus, Rupert Murdoch's News Corporation soared 7.6 percent to $21.83 after confirming it is considering a split into two publicly traded companies, separating its publishing assets from its bigger entertainment arm.

Coca-Cola slipped 0.2 percent. The soft drinks giant and its local bottlers announced a $5 billion investment in India by 2020, $3 billion more than initially planned, after sales boomed in the fast-growing market.

Investment firm KKR was up 0.2 percent after reporting it had raised $4 billion to invest in energy and infrastructure, and was looking to invest $2 billion in energy in the coming weeks.

The indices scored losses of more than 1.0 percent Monday.

The bond market retreated. The yield on 10-year treasuries rose to 1.64 percent from 1.61 percent Monday, while the 30-year yield climbed to 2.71 percent from 2.68 percent.

Bond prices and yields move in opposite directions.