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U.S. stocks mostly lower on weak economic data; DOW off 0.16%

Published 01/31/2012, 04:37 PM
Updated 01/31/2012, 04:38 PM
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Investing.com -  U.S. stocks closed Tuesday’s trading session mostly lower as weak economic data weighed on equities.
 
At the close of U.S. trade, the Dow Jones Industrial Average dropped 0.16%, the S&P 500 fell 0.05% and the Nasdaq Composite climbed 0.07%.
 
Equities slashed earlier gains as reports indicated that consumer confidence and and business activity both declined in the U.S. casting a bearish aura on the session.
 
The morning stock rally was sparked in Europe as leaders, meeting in Brussels, reached an agreement on a fiscal discipline treaty that includes sanctions for high deficit states and demands members to create laws to limit budget shortfalls.
 
In addition, the leaders also decided to launch the European Stability Mechanism on July 1st, one year ahead of the original plan.
 
However, Britain and the Czech Republic refrained from agreeing with the treaty.
 
In Greek news, Prime Minister Lucas Papademos stated that he is “strongly committed” to reaching a debt deal, adding to the bullish sentiment on the day.
 
Earlier, Portugal borrowing costs spiked to a euro era high, however Prime Minister Pedro Passos Coehlo calmed the markets by saying the debt is “perfectly sustainable” and there is no risk of writedowns on the bonds.
 
The unemployment rate hit a two decade low in Germany further fuelling the bullish sentiment on the session.
 
The S&P 500 is up 4.3% for the month and out of 192 companies in the index reporting results, 129 posted per share earnings that beat estimates, solidifying the bullish stock case, despite downbeat economic data. 
 
Delivery service, UPS dropped 0.9% after slightly missing sales estimates.
 
Radio Shack plunged 30% upon suspending a stock buy back program and reporting weaker than expected fourth quarter earnings.
 
Financial shares gained the most on the session with Goldman Sachs advancing 1.4% and Morgan Stanley climbing 2.3%
 
Drug maker, Eli Lily added 1.4% on higher sales of depression and diabetes medicines.
 
Toy company, Mattel soared 5.1% after beating analysts fourth quarter profit estimates.
 
At the close of European trade, the EURO STOXX 50 advanced 0.50%, France's CAC 40 gained 1.01%, while Germany's DAX surged 0.22%. Meanwhile, in the U.K. the FTSE 100 climbed 0.19%.



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