Stocks closed on opposite sides of the unchanged mark on Tuesday, as a mixed batch of economic data and solid quarterly earnings results divided market sentiment on the day. While the Dow eked out a modest gain, the Nasdaq and the S&P 500 declined by slim margins.
On the economic front, the Conference Board released a report showing that its consumer confidence index fell to 50.4 in July from an upwardly revised 54.3 in June. Economists had expected the index to slip to a reading of 51.0 compared to the 52.9 originally reported for the previous month.
Commenting on the data, Lynn Franco, Director of the Conference Board Consumer Research Center, said, "Concerns about business conditions and the labor market are casting a dark cloud over consumers that is not likely to lift until the job market improves."
"Given consumers' heightened level of anxiety, along with their pessimistic income outlook and lackluster job growth, retailers are very likely to face a challenging back-to-school season," she added.
Meanwhile, Standard and Poor's said the S&P/Case-Shiller 20-City Composite Home Price rose at an annual rate of 4.6 percent in May compared to the 3.8 percent growth seen in April. Economists had expected prices to increase at an annual rate of 4.0 percent.
S&P also said that the 20-City Composite Index rose 1.3 percent on a monthly basis in May following a 0.9 percent increase in the previous month.
In earnings news, chemical giant DuPont (DD) firmly beat second quarter earnings and revenue estimates while also boosting its full-year earnings forecast.
Meanwhile, BP PLC (BP) posted a heavy second-quarter loss compared to a year-ago profit due to $32.2 billion in charges related to the oil spill in the Gulf of Mexico.
The firm also named managing director Robert Dudley as its new chief executive, set to replace Tony Hayward in October. Dudley will be the first American to head the company.
The major averages ended the day mixed, with the Dow posting a modest gain and reaching a new two-month closing high. The Dow gained 12.26 points or 0.1 percent to close at 10,537.69, while the Nasdaq declined by 8.18 points or 0.4 percent to 2,288.25 and the S&P 500 slipped by 1.17 points or 0.1 percent to 1,113.84.
Sector News
Gold stocks were among the day's weakest performers, with the NYSE Arca Gold Bugs Index dropping by 3.4 percent. With the pullback, the index fell to its lowest closing level in over two months.
The selling in gold stocks came as gold for August delivery dropped by $25.10 to $1,158.00 an ounce, its lowest closing level since April.
Housing, airline, retail and steel stocks also posted notable losses on the day, with the NYSE Arca Steel Index falling by 1.7 percent and pulling back off of the two and a half month closing high set on Monday.
Meanwhile, strength among utility, computer hardware and banking stocks helped to offset some of the weakness in other market segments. The Dow Jones Utilities Average rose 1.7 percent to close at a six month high.
Dow Components
DuPont was the leading percentage gainer in the Dow, rising by 3.6 percent after its quarterly earnings report satisfied the markets. The advance lifted shares of the chemical giant to a three-month closing high.
Hewlett Packard (HPQ) also closed notably higher, posting a gain of 2.2 percent. The upward move lifted the stock up to its best closing price in five weeks.
Pfizer (PFE) and Verizon (VZ) also both advanced by more than 1 percent, while American Express (AXP), Home Depot (HD), Cisco (CSCO) and Caterpillar (CAT) all fell by more than 1 percent.
American Express and Caterpillar pulled back off of two-month closing highs, while Home Depot dropped away from a monthly closing high, all reached on Monday.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region saw a mixed close on Tuesday. Japan's benchmark Nikkei 225 inched down by 0.1 percent, while Hong Kong's Hang Seng Index gained 0.6 percent.
Meanwhile, the major European markets ended with moderate gains. The French CAC 40 Index rose by 0.8 percent, while the U.K.'s FTSE 100 Index and the German DAX Index advanced by 0.3 percent and 0.2 percent, respectively.
In the bond markets, treasuries ended moderately lower. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, closed at 3.047 percent, posting a gain of 5.3 basis points.
Looking Ahead
Wednesday, the economic calendar is relatively light, with only data on durable goods orders likely to attract attention. In earnings news, the markets are likely to look to quarterly results from Boeing (BA), Sprint Nextel (S) and CH Robinson (CHRW), among many others.
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