U.S. Stocks Close Mixed Following Lackluster Session

(RTTNews) - Stocks turned in a relatively lackluster performance during trading on Tuesday following the recovery from the early sell-off seen in the previous session. The Dow and the Nasdaq moved in opposite directions, while the S&P 500 spent the day lingering near the unchanged line.

The major averages eventually closed mixed for the second straight day. While the Nasdaq climbed 65.40 points or 0.5 percent to 12,807.92, the Dow fell 200.94 points or 0.7 percent to 30,015.51 and the S&P 500 dipped 7.66 points or 0.2 percent to 3,687.26.

The choppy trading on Wall Street came as traders seemed reluctant to make significant moves amid uncertainty about the near-term outlook for the markets following the recent run to record highs.

Reports about a new coronavirus strain generated some negative sentiment, although news of the approval of a new stimulus bill helped prop up the markets.

The $900 billion relief package includes federal assistance for the unemployed, small businesses and healthcare providers as well as $600 in direct payments to individuals.

The relief package was attached to a $1.4 trillion government spending bill that funds the government through September 30th. The bill is expected to be signed by President Donald Trump in the coming days.

The upcoming holidays also contributed to light trading activity, but some traders are likely to stick around for a slew of U.S. economic data on Wednesday.

On the U.S. economic front, the Commerce Department released revised data showing the U.S. economy grew by slightly more than previously estimated in the third quarter of 2020.

The report showed the spike in gross domestic product in the third quarter was upwardly revised to 33.4 percent from the previously reported 33.1 percent. Economists had expected the jump in GDP to be unrevised.

The Commerce Department said the unexpected upward revision primarily reflected larger increases in consumer spending and non-residential fixed investment.

Meanwhile, the National Association of Realtors released a separate report showing existing home sales pulled back in the month of November.

NAR said existing home sales tumbled by 2.5 percent to an annual rate of 6.69 million in November after jumping by 4.4 percent to a revised rate of 6.86 million in October.

Economists had expected existing home sales to slump by 2.2 percent to a rate of 6.70 million from the 6.85 million originally reported for the previous month.

The Conference Board also released a report showing consumer confidence in the U.S. has unexpectedly decrease in the month of December, with the report also showing a substantial downward revision to the reading on consumer confidence in November.

The Conference Board said its consumer confidence index slid to 88.6 in December from a downwardly revised 92.9 in November.

Economists had expected the consumer confidence index to inch up to 97.0 from the 96.1 originally reported for the previous month.

Sector News

Reflecting the lackluster performance by the broader markets, most of the major sectors ended the day showing only modest moves.

Gold stocks showed a substantial move to the downside, however, with the NYSE Arca Gold Bugs Index plunging by 3.1 percent.

The sell-off by gold stocks came amid a decrease by the price of the precious metal, as gold for February delivery slid $12.50 to $1,870.30 an ounce.

Considerable weakness was also visible among airline stocks, as reflected by the 2.4 percent slump by the NYSE Arca Airline Index. The index ended the session at its lowest closing level in a month.

Energy, banking, and steel stocks also saw significant weakness on the day, while notable strength among networking and software stocks contributed to the advance by the tech-heavy Nasdaq.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly lower during trading on Tuesday. Japan's Nikkei 225 Index slumped by 1 percent, while China's Shanghai Composite Index plunged by 1.9 percent.

Meanwhile, the major European markets moved to the upside on the day. While the U.K.'s FTSE 100 Index rose by 0.6 percent, the German DAX Index and the French CAC 40 Index surged up by 1.3 percent and 1.4 percent, respectively.

In the bond market, treasuries moved modestly higher after ending the previous session nearly unchanged. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, fell by 2.3 basis points to 0.918 percent.

Looking Ahead

A slew of U.S. economic data may attract attention on Wednesday, with traders likely to keep an eye on reports on weekly jobless claims, durable goods orders, personal income and spending, new home sales and consumer sentiment.