Wall St weighed by GDP, home prices data
U.S. stocks fell on Tuesday, a day after the Dow hit a 13-month high, after data showed the economy grew in the third quarter, but at a slower rate than expected.
Gross domestic product (GDP) expanded 2.8 percent, rather than the 3.5 percent pace the government estimated last month. While the data could signal an end to the recession, investors are looking for more robust growth to justify additional stock gains after a 22 percent rise in the S&P 500 this year.
U.S. home prices rose in September, according to the Standard & Poor's/Case-Shiller index, but at a much less robust rate than forecast. The Dow Jones U.S. Home Construction index <.DJUSHB> fell 2 percent.
The economic growth in the third quarter was a bit disappointing, mainly because it was related to consumers. It raised concerns on what's already an issue for investors ... the pace of recovery in consumer spending going into the holiday season, said Jeff Kleintop, chief market strategist for LPL Financial in Boston.
The Dow Jones industrial average <.DJI> was down 51.92 points, or 0.50 percent, at 10,399.03. The Standard & Poor's 500 Index <.SPX> fell 4.34 points, or 0.39 percent, at 1,101.90. The Nasdaq Composite Index <.IXIC> dropped 13.08 points, or 0.60 percent, at 2,162.93.
The market trimmed losses at midmorning after the Conference Board reported the U.S. consumer confidence index rose to 49.5 in November, above expectations of 47.7.
The technology-heavy Nasdaq was pressured by Hewlett-Packard Co
Financial stocks also weighed on Wall Street on increased worries that Chinese banks, under government pressure to shore up their finances, are set to unleash billions of dollars in capital raising that could strain equities markets.
Both the S&P 500 financial sector <.GSPF> fell about 1 percent, and the KBW Bank Index <.BKX> was down 0.7 percent.
JPMorgan Chase & Co
On the upside, Medtronic Inc
(Reporting by Angela Moon; editing by Jeffrey Benkoe)
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