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U.S. stocks are mixed after data on manufacturing, pending home sales

U.S. stocks are mixed after data on manufacturing, pending home sales

Wall Street was mixed Tuesday after reports showed strength in manufacturing but a wilting housing market, leading already cautious investors to maintain the conservative stance that followed April's big advance.
Bond prices fell on concerns that a hoped-for interest rate cut won't materialize.
Though the Institute for Supply Management's April manufacturing index came in at 54.7, higher than March's reading and above forecasts, the strong expansion roused little enthusiasm in the stock market. Robust manufacturing activity is good for many U.S. companies, but it also makes it less likely that the Federal Reserve will lower interest rates later in the year to boost spending _ especially in a climate of rising costs, which the ISM's report described.
Investors were also disappointed, though not very surprised, to see home sales are still declining: The National Association of Realtors said pending sales of existing homes fell by 4.9 percent in March to their lowest point in four years.
After a strong April, during which the Dow Jones industrial average saw the biggest percentage gain in more than three years and crossed 13,000 for the first time, the market took a more tentative tone Tuesday. Investors drifting more toward the stocks of larger, established companies will be looking toward upcoming economic data and first-quarter profit reports to decide whether to keep buying up stocks.
"We're really not having a big reaction to anything, and that's not unusual after having a month like we did in April," said Arthur Hogan, chief market analyst at Jefferies & Co., adding that he sees Tuesday's economic data as, on the whole, slightly positive. "I would expect we spend some time in May digesting that move."
In midday trading, the Dow rose 12.28, or 0.09 percent, to 13,075.19.
Broader stock indicators were lower. The Standard & Poor's 500 index fell 1.10, or 0.07 percent, to 1,481.27, and the Nasdaq composite index was off 6.16, or 0.24 percent, to 2,518.93.
Declining issues outnumbered advancers by 9 to 7 on the New York Stock Exchange, where volume came to 801.8 million shares.
Bond prices dropped after the manufacturing data, and the yield on the benchmark 10-year Treasury note rose to 4.66 percent, up from 4.62 late Monday.
The dollar slipped against other major currencies, while gold prices also fell.
Meanwhile, earnings reports were mixed Tuesday.
Procter & Gamble Co., one of the 30 components of the Dow industrials and maker of Crest toothpaste and Pampers diapers, reported a 14 percent increase in its fiscal third-quarter profit in part as it extracted savings from its Gillette business. After a string of better-than-expected quarterly reports in recent weeks, Wall Street was unimpressed with profit that failed to top expectations.
Procter & Gamble fell $1.72, or 2.7 percent, to $62.68 in early trading.
Archer Daniels Midland Co.'s fiscal third-quarter earnings fell short of Wall Street's expectations, though revenue topped expectations. The country's largest ethanol producer said higher costs for corn cut into results.
Archer Daniels Midland fell $2.39, or 6.2 percent, to $36.31.
In other corporate news, Dow Jones & Co. shares jumped more than 50 percent after News Corp. made a bid for the company that publishes The Wall Street Journal. Dow Jones was up $20.95 at $57.28.


Updated : 2021-05-06 11:49 GMT+08:00