Drop in consumer confidence pulls stocks lower
NEW YORK — Stocks have reversed early gains and are falling on a report showing Americans are still downbeat on the economy.
The Conference Board says its consumer confidence index fell to 53.1 in September, down from 54.5 in August, and much lower than the reading of 57 that economists expected.
The private group says consumers are still worried about losing their jobs.
Stocks had been rising in the early going after an upbeat report showing home prices rose for a third month in a row.
The Dow Jones industrials are down 29 at 9,760, after being up about 12 points prior to the consumer confidence data. The Standard & Poor’s 500 index is down 2 at 1,060, and the Nasdaq composite index is down 7 at 2,122.
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.
The stock market advanced Tuesday after an upbeat report on home prices.
A higher open, although modest, continued the market’s rally from Monday, when the Dow Jones industrials shot up more than 120 points. Investors, who have been more pessimistic lately, got a lift from news of corporate dealmaking that signaled companies are feeling more upbeat about the economy.
The Standard & Poor’s/Case-Shiller home price index of 20 major cities released Tuesday showed year-over-year improvement for July, the sixth month in a row. The index rose 1.2 percent from June. Though home prices are still 13.3 percent below July a year ago, they have risen for three months straight.
Investors will get additional news Tuesday morning about one of their greatest concerns, consumer spending, when the Conference Board issues its consumer confidence index for September.
The report is expected to show Americans are more comfortable despite the continuing rise in unemployment. Consumers are critical to a recovery because their spending accounts for more than two-thirds of all economic activity.
Economists project a reading of 57.0, up from 54.1 in August. The report is due at 10 a.m. EDT.
Disappointing manufacturing and home sales data reignited worries last week that any economic recovery may be slow and bumpy.
In early minutes of trading, Dow Jones industrial average rose 12.10, or 0.1 percent, to 9,801.46. The Standard & Poor’s 500 index rose 2.95, or 0.3 percent, to 1,065.93. The Nasdaq composite index rose 3.05, or 0.1 percent, to 2,133.79.
Asian stocks rebounded, while European markets remain slightly lower.
Japan’s Nikkei stock average rose 0.9 percent. In afternoon trading, Britain’s FTSE 100 was down 0.1 percent, Germany’s DAX index was down 0.3 percent, while France’s CAC-40 was up 0.1 percent.
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