Stocks were mixed on Monday, lifted by good economic data on the manufacturing industry but held down by a report that the rate of home sales fell short of expectations.
The government said before trading began that orders for long-lasting goods rose in December by 4.6 percent, helped by a 10 percent gain in orders for new aircraft. The durable goods report was a sign of strength for the manufacturing sector, a crucial driver of economic growth.
A half-hour after trading began, the National Association of Realtors said its index of pending home sales fell in December, suggesting sales of previously occupied homes could slow. The report was weaker than many economists had expected.
The Dow closed down 14.05 points, or 0.1 percent, at 13,881.93. The Standard Poor’s 500-stock index fell 2.78 points, or 0.2 percent, to 1,500.18. The Nasdaq composite index added 4.59 points, or 0.15 percent, to 3,154.30.
The heavy equipment maker Caterpillar said separately that its fourth-quarter net income exceeded analysts’ expectations after adjusting for the cost of a soured deal to buy a Chinese maker of roofing supports for mines. Caterpillar said it took a big charge in the quarter because the Chinese company had misrepresented its finances.
Caterpillar was the biggest gainer in the Dow Jones industrial average, closing up $1.87, or 2 percent, at $97.45.
The Dow and the S. P. 500 are approaching their closing highs, reached on Oct. 9, 2007. The Dow is about 282 points below its high of 14,164.53; the S. P. is 65 points below its record of 1,565.
Economic data may be less likely to support the indexes because traders have become harder to impress as the data strengthened in recent weeks, said Bill Stone, chief investment strategist with the PNC Asset Management Group.
“Before, even if you came in just at expectations, that was like a victory,” he said. Because of the market’s recent upturn, he said, “you get less of a pop for just making the numbers.”
The oil company Hess was the biggest gainer in the S. P. 500, adding 6.1 percent after the company said it planned to sell its terminal network in the United States, close its New Jersey refinery and shift its focus to exploration and production.
Interest rates were steady. The Treasury’s benchmark 10-year note fell 4/32, to 97 flat, and the yield rose to 1.97 percent from 1.95 percent late Friday.
Article source: http://www.nytimes.com/2013/01/29/business/daily-stock-market-activity.html?partner=rss&emc=rss
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