Stock rally stalls but Dow ekes out gain
U.S. stocks closed mostly lower
on Tuesday as differing views on whether the market can build on recent gains stalled the S&P 500's six-day winning streak.
The Dow industrials eked out a small gain to set a fresh 13-month high as cautious statements on the economic outlook from several Fed officials underscored the belief that easy monetary policy will remain intact well into next year.
There's a lot of conflicting signals as to whether we get a sharp year-end rally with money pouring in, or whether we start to see profit-taking as investors look ahead to a potential jobless recovery in 2010, said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
The Dow Jones industrial average <.DJI> gained 20.03 points, or 0.20 percent, to end at 10,246.97. The Standard & Poor's 500 Index <.SPX> shed 0.07 of a point, or 0.01 percent, to 1,093.01. The Nasdaq Composite Index <.IXIC> dropped 2.98 points, or 0.14 percent, to close at 2,151.08.
Shares of Dow component American Express Co
Home builders' shares took a hit, with the Dow Jones home construction index <.DJUSHB> down 2 percent after data from the National Association of Realtors showed home prices fell in the third quarter from year-ago levels in about 80 percent of U.S. cities.
DR Horton Inc
Among financials, MBIA Inc's
Regional bank Zions Bancorp
On the upside, Monsanto Co
American International Group
Shares of online travel agency Priceline.com
jumped 17.6 percent to $204.22 a day after the company reported earnings that beat forecasts.
Volume was light on the New York Stock Exchange, with 1.07 billion shares changing hands, below last year's estimated daily average of 1.49 billion. On the Nasdaq, about 2.01 billion shares traded, below last year's daily average of 2.28 billion.
Declining stocks outnumbered advancing ones on the NYSE by a ratio of about 3 to 2, while on the Nasdaq, nearly two stocks fell for every one that rose.
(Editing by Jan Paschal)
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