After failing to sustain an early upward move, stocks turned in a lackluster performance over the course of the trading day on Tuesday. The choppy trading came as investors weighed optimism about the financial situation in Europe against a disappointing batch of U.S. economic data.
The major averages eventually ended the session mixed, although they were all nearly unchanged on the day. While the tech-heavy Nasdaq inched up 1.90 points or 0.1 percent to 2,813.84, the Dow fell 20.81 points 0.2 percent to 12,632.91 and the S&P 500 edged down 0.61 points or 0.1 percent to 1,312.40.
The upward move in early trading on Wall Street came as traders reacted positively to the latest news out of Europe, including comments from Greek Prime Minister Lucas Papademos indicating that "significant progress" has been made in reaching a debt-swap agreement with bondholders.
Papademos said that his government wants to conclude negotiations with its private sector bondholders on a debt restructuring deal by the end of this week.
The markets also benefited from news that most European Union leaders have agreed to sign a new fiscal compact designed to achieve tighter budgetary discipline.
However, a disappointing housing report released before the start of trading helped to limit the upside for the markets, with the report from Standard & Poor's showing a bigger than expected drop in U.S. home prices in the month of November.
The report showed that the S&P/Case-Shiller 20-City Composite Home Price Index fell by 0.7 percent in November on a seasonally adjusted basis. Economists had been expecting the index to decrease by about 0.4 percent.
Stocks subsequently pulled back off their early highs following the release of weaker than expected readings on Chicago-area business activity and consumer confidence.
The Institute for Supply Management - Chicago said its Chicago business barometer fell to 60.2 in January from 62.2 in December, although a reading above 50 indicates an expansion in regional business activity. The drop surprised economists, who had expected the index to edge up to a reading of 63.0.
Separately, the Conference Board said its consumer confidence index dropped to 61.1 in January from a revised 64.8 in December. Economists had expected the index to increase to 68.0 from the 64.5 originally reported for the previous month.
Among individual stocks, shares of RadioShack (RSH) moved sharply lower on the day after the consumer electronics retailer forecast fourth quarter earnings well below analyst estimates. The company cited the underperformance of its Sprint postpaid wireless business.
Oil giant Exxon Mobil (XOM) also ended the day in the red despite reporting fourth quarter earnings that came in slightly above analyst estimates.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher over the course of the trading day on Tuesday. Japan's Nikkei 225 Index edged up by 0.1 percent, while Hong Kong's Hang Seng Index jumped by 1.1 percent.
The major European markets also moved to the upside on the day but closed well off their best levels. While the French CAC 40 Index advanced by 1 percent, the U.K.'s FTSE 100 Index and the German DAX Index both inched up by 0.2 percent.
In the bond market, treasuries turned higher over the course of the trading day after seeing early weakness. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 3.8 basis points to a nearly four-month closing low of 1.799 percent.
Despite the lack of direction shown by the broader markets, housing stocks saw significant weakness on the heels of the disappointing S&P report. The Philadelphia Housing Sector Index fell by 1.4 percent, pulling back further off the eleven-month closing high it set last Wednesday.
Meritage Homes (MTH) turned in one of the housing sector's worst performances, with the homebuilder falling by 10.9 percent. The loss by Meritage came after the company reported a fourth quarter loss that came in much wider than in the year ago quarter.
Railroad, healthcare provider, and natural gas stocks also saw moderate weakness on the day, although selling pressure remained relatively subdued.
On the other hand, health insurance stocks showed a strong move to the upside on the day, driving the Morgan Stanley Healthcare Payor Index up by 1.1 percent. Centene (CNC) and Wellcare Health Plans (WCG) turned in two of the sector's best performances.
Trucking and electronic storage stocks also posted notable gains, while most of the major sectors showed only modest moves.
U.S. economic data may continue to attract attention on Wednesday, with traders likely to keep an eye on reports on private sector employment, manufacturing activity, and construction spending. Any major developments in Europe could also impact trading.
On the earnings front, Aetna (AET), Hershey (HSY), and Northrop Grumman (NOC) are among the companies due to report their quarterly results before the start of trading on Wednesday.
For comments and feedback contact: editorial@rttnews.com
Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.