Interest-rate concerns stifled Wall Street's attempt to extend its rally Tuesday, even as the market drew support from upbeat reports on...
NEW YORK — Interest-rate concerns stifled Wall Street’s attempt to extend its rally Tuesday, even as the market drew support from upbeat reports on factory orders, housing demand and consumer confidence.
At the close of trading, the Dow Jones industrial average lost 2.56 to 10,888.16, after gaining almost 70 points early in the session.
Microsoft, one of the 30 Dow stocks, slipped 7 cents to close at $27.68 a share. Boeing, also a Dow stock, gained 50 cents to $69.13.
Broader stock indicators finished mixed. The S&P 500 was up 0.02 at 1,257.48, while the Nasdaq fell 6.66 to 2,232.71.
Most Read Stories
- Live updates: Women's marches in Seattle, D.C. on day after President Trump inauguration WATCH
- Man shot at UW no racist, friends insist, despite shooter’s claim
- Man shot during protests of Breitbart editor Milo Yiannopoulos' speech at UW; suspect arrested WATCH
- Crowd comparison: Inauguration Friday and women's march Saturday
- Live updates from Inauguration Day: 1 injured in shooting at demonstration at UW WATCH
Positive economic data stoked the market at the opening, but those gains were limited by a bond sell-off as traders grew worried that a strengthening economy would give the Federal Reserve reason to continue its rate-tightening campaign.
“I think the picture that’s emerging is that the economy is doing pretty well and that energy prices have rolled over sooner than expected,” said Robert Tipp, chief investment strategist for Prudential Fixed Income. “We’re basically not seeing the slowdown people were looking for. They’re hoping the Fed will stop the rate-hike cycle sooner.”
On Monday, the market ended a seven-day winning streak amid a five-week rally that has carried the Standard & Poor’s 500 and the Nasdaq composite indexes to four-year highs. But many analysts say the market is overbought and needed a break after the recent gains.
Tuesday’s government reports offered encouraging signs about the economy. The Commerce Department said orders for big-ticket manufactured goods grew 3.4 percent in October, with increased demand for military aircraft and parts accounting for more than half of the $7.1 billion gain.
The department also reported new-home sales grew 16.5 percent to 1.42 million in October, beating forecasts for 1.2 million and a previous record in July of 1.35 million. A recovery in the Western housing market led the growth, the department said.
Meanwhile, the Conference Board said its November consumer confidence index rose 13.7 points to 98.9, besting economists’ forecast for a reading of 90.