Summary A mix of downbeat corporate and economic news tugged the U.S. stock market lower
NEW YORK: (AP) - A mix of downbeat corporate and economic news tugged the U.S. stock market lower Tuesday, as health care companies and housing stocks fell. Johnson & Johnson sank after reporting that a stronger dollar pinched the company s quarterly results.
KEEPING SCORE: The Standard & Poor s 500 index fell three points, or 0.2 percent, to 2,016 as of 2:20 p.m. The Dow Jones industrial average dropped 66 points, or 0.4 percent, to 17,447, while the Nasdaq picked up eight points, or 0.2 percent, to 4,642.
BUILDERS: A weak signal from the housing market sent builders stocks down. The National Association of Home Builders/Wells Fargo s builder sentiment index slipped a point from the prior month, an indication that they feel slightly less confident in their sales prospects heading into the spring. D.R. Horton dropped $1.07, or 5 percent, to $22.68, while PulteGroup lost $1.12, or 5 percent, to $20.45.
UNSTABLE: "There s just a lot driving trading today," Randy Frederick, managing director of trading and derivatives with the Schwab Center for Financial Research. "I think we re going to see more volatility for a while, not just down but up, too."
Uncertainty is behind the turbulence, Frederick said. At the moment, there are just too many open questions hanging over investors heads. He pointed to two upcoming events that could swing markets: a meeting of the European Central Bank on Thursday and elections in Greece on Sunday.
THE DOLLAR EFFECT: Johnson & Johnson, the maker of Tylenol, prescription drugs and joint replacements, turned in earnings that beat analysts forecasts, yet it came up short for revenue, largely a result of a stronger dollar. Sales of medical devices, baby shampoo and other products sank as transactions in foreign currencies translated into fewer dollars. The company s stock fell $3.53, or 3 percent, to $100.52.
FUELED: Delta Air Lines surged after the carrier reported quarterly results that topped analysts estimates. Falling oil prices helped, as the airline spent much less on fuel compared with the same period of 2013. Its stock rose $2.93, or 6 percent, to $48.78.
ENERGY: Benchmark U.S. crude dropped $2.34 to $46.78 a barrel in New York. Brent crude, the international benchmark, fell 66 cents to $48.19 a barrel.
REPORT CARDS: The fourth-quarter earnings season is in full swing, and analysts continue to lower their expectations for overall results. At the start of December, they estimated that big corporations would report quarterly earnings growth of 6.6 percent. Now, they estimate that earnings will increase 4.3 percent, according to S&P Capital IQ.
SAFE SPOTS: A slew of concerns have led traders into investments that often move in the opposite direction from the stock market. Gold continued its recent rally on Tuesday, climbing $17.30 to settle at $1,294.20 an ounce. Prices also climbed in the U.S. government bond market, tamping yields down. The yield on the 10-year Treasury dipped to 1.78 percent, a sharp drop from 1.84 percent late Friday.
METALS: Most other precious and industrial metals made gains Tuesday. Silver rose two cents to $17.96 an ounce. Copper was the exception, slipping 2 cents to $2.59 a pound.
OVER THERE: European stock markets were mixed. Britain s FTSE 100 rose 0.5 percent. France s CAC 40 gained 1.2 percent, while Germany s DAX closed with a gain of 0.1 percent.ASIA S DAY: Japan s Nikkei 225 rose 2.1 percent, and Hong Kong s Hang Seng was up 0.9 percent. China s Shanghai Composite closed with a gain of 1.8 percent. It plunged 7.7 percent on Monday in reaction to a regulatory clampdown on brokerages financing the stock purchases of investors.
