Stocks Close Lower As Greece Faces New Elections
(RTTNews) - After showing a lack of direction for much of the session, stocks came under pressure in the latter part of the trading day on Tuesday. Worries about Greece weighed on the markets once again, overshadowing a batch of largely upbeat U.S. economic data.
The major averages moved roughly sideways going into the close, stuck firmly in negative territory. The Dow fell 63.35 points or 0.5 percent to 12,632.00, the Nasdaq slipped 8.82 points or 0.3 percent to 2,893.76 and the S&P 500 dropped 7.69 points or 0.6 percent to 1,330.66.
With the losses on the day, the major averages once again ended the session at their worst closing levels in over three months.
The selling pressure that emerged on Wall Street came amid continued uncertainty about the political situation in Greece, which is headed for a new round of elections after lawmakers failed to form a coalition government.
The new elections are seen as referendum on whether Greece should remain a member of the eurozone, adding to the recent worries about the outlook for Europe.
However, a batch of relatively upbeat U.S. economic data helped to limit the downside for the markets, with a report from the National Association of Home Builders showing that its reading on homebuilder confidence reached a five-year high in May.
The report showed that the NAHB/Wells Fargo Housing Market Index jumped to 29 in May from a downwardly revised 24 in April. Economists had expected the index to edge up to 26 from the 25 originally reported for the previous month.
A separate report from the New York Federal Reserve showed a much faster than expected expansion in New York manufacturing activity
The New York Fed said its general business conditions index jumped to 17.1 in May from 6.6 in April, with a positive reading indicating an increase in regional manufacturing activity. Economists had expected the index to show a more modest increase to a reading of 10.0.
Additionally, the Commerce Department said retail sales edged up by 0.1 percent in April following a revised 0.7 percent increase in March. The increase matched the expectations of economists.
Core sales, which exclude gas, autos, and building materials, rose by 0.4 percent in April, exceeding estimates for a 0.3 percent increase.
Among individual stocks, shares of Home Depot (HD) fell by 2.4 percent after the home improvement retail giant reported first quarter earnings that exceeded analyst estimates but on weaker than expected sales. The company also raised its full year earnings and sales guidance.
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