NEW YORK—U.S. stocks fell after a weak reading on U.S. consumer confidence trumped early enthusiasm for a European Union pact to tighten fiscal ties.
The Dow Jones Industrial Average declined 75 points, or 0.6%, to 12578 in midday trade, putting blue chips on pace for their first four-session losing streak since November.
The Standard & Poor's 500-stock index fell 5 points, or 0.4%, to 1308 and the Nasdaq Composite declined 10 points, or 0.4%, to 2802.
The Dow climbed to session highs immediately before a reading on U.S. consumer confidence in January, but then abruptly turned lower and negative after the report missed expectations.
The Conference Board's index of consumer confidence retreated to 61.1 this month from a revised 64.8 in December, well shy of the 68.0 reading expected by economists surveyed by Dow Jones Newswires.
"Overall, the consumer has been resilient, but there's some fear that the consumer could retrench again," said Todd Salamone, director of research at Schaeffer's Investment Research.
Tuesday's stock declines put at risk the chances for stocks to reach a handful of January milestones. The Dow flirted with its largest January point gain in its history, buy remained on pace for its best January percentage gain since 1997.
Meanwhile, the S&P 500 approached both its largest January point gain and percentage rise since 1997.
Investors once again were digesting quarterly earnings reports. Exxon Mobil fell 2.3%, leading the Dow lower, after reporting its fourth-quarter earnings edged up 1.6%, in line with estimates. High oil prices offset the impact of lower production and weak refining margins.
Pfizer fell 1.6% after the biopharmaceutical company reported fourth-quarter earnings and revenue that topped expectations, but lowered its 2012 earnings outlook slightly to reflect unfavorable changes in foreign-exchange rates.
In corporate new, RadioShack plunged 29% after the consumer electronics retailer reported disappointing preliminary fourth-quarter earnings and a drop in gross margins, citing significant declines in its Sprint business. The company also said it decided to suspend share repurchases "for the near term."
U.S. Steel climbed 1.8% after the company reported a wider-than-expected fourth-quarter loss, but said it expected a significant improvement in current quarter results.
Mattel's fourth-quarter earnings rose 14% on improved margins, despite slower-than-expected sales growth, and the toy maker raised its dividend 35%. Shares of the largest U.S. toy maker by revenue jumped 5%.
Apple rose 0.9% after the company tapped John Browett, chief of Dixons Retail, one of Europe's largest electronics retailers, as its new head of retail, filling its most high-profile vacancy with a rare company outsider.
Archer Daniels Midland fell 5% after the agribusiness company's fiscal second-quarter earnings plummeted 89% tied to a large writedown related to an Iowa facility and the company experienced weakness in three of its major segments.
United Parcel Service fell 1.5% after the company reported better-than-expected fourth-quarter earnings and provided an upbeat 2012 outlook.
Eli Lilly gained 0.6% after the drug maker exceeded fourth-quarter earnings and revenue expectations and confirmed its 2012 outlook.
Biogen Idec rose 0.7% after the biopharmaceutical company's fourth-quarter results exceeded forecasts, though its 2012 earnings outlook fell short.
Stocks initially got a lift from Europe, after leaders of 25 of the 27 European Union governments agreed on a pact to move closer to fiscal union, and signed off on a permanent bailout fund for the 17-nation euro zone.
Talks between Greece and its private creditors over a debt restructuring appeared to make progress. The Stoxx Europe 600 rose 0.8%.
Asian bourses were mostly higher, with Japan's Nikkei Stock Average rising 0.1% after better-than-expected industrial production data for December, and with China's Shanghai gaining 0.3%.
Gold futures gained 0.1% to $1736.00 an ounce, while crude oil futures climbed 0.1% to $98.82 a barrel. The U.S. dollar lost rose against the euro, but edged lower against the yen.
wsj.com
The Dow Jones Industrial Average declined 75 points, or 0.6%, to 12578 in midday trade, putting blue chips on pace for their first four-session losing streak since November.
The Standard & Poor's 500-stock index fell 5 points, or 0.4%, to 1308 and the Nasdaq Composite declined 10 points, or 0.4%, to 2802.
The Dow climbed to session highs immediately before a reading on U.S. consumer confidence in January, but then abruptly turned lower and negative after the report missed expectations.
The Conference Board's index of consumer confidence retreated to 61.1 this month from a revised 64.8 in December, well shy of the 68.0 reading expected by economists surveyed by Dow Jones Newswires.
"Overall, the consumer has been resilient, but there's some fear that the consumer could retrench again," said Todd Salamone, director of research at Schaeffer's Investment Research.
Tuesday's stock declines put at risk the chances for stocks to reach a handful of January milestones. The Dow flirted with its largest January point gain in its history, buy remained on pace for its best January percentage gain since 1997.
Meanwhile, the S&P 500 approached both its largest January point gain and percentage rise since 1997.
Investors once again were digesting quarterly earnings reports. Exxon Mobil fell 2.3%, leading the Dow lower, after reporting its fourth-quarter earnings edged up 1.6%, in line with estimates. High oil prices offset the impact of lower production and weak refining margins.
Pfizer fell 1.6% after the biopharmaceutical company reported fourth-quarter earnings and revenue that topped expectations, but lowered its 2012 earnings outlook slightly to reflect unfavorable changes in foreign-exchange rates.
In corporate new, RadioShack plunged 29% after the consumer electronics retailer reported disappointing preliminary fourth-quarter earnings and a drop in gross margins, citing significant declines in its Sprint business. The company also said it decided to suspend share repurchases "for the near term."
U.S. Steel climbed 1.8% after the company reported a wider-than-expected fourth-quarter loss, but said it expected a significant improvement in current quarter results.
Mattel's fourth-quarter earnings rose 14% on improved margins, despite slower-than-expected sales growth, and the toy maker raised its dividend 35%. Shares of the largest U.S. toy maker by revenue jumped 5%.
Apple rose 0.9% after the company tapped John Browett, chief of Dixons Retail, one of Europe's largest electronics retailers, as its new head of retail, filling its most high-profile vacancy with a rare company outsider.
Archer Daniels Midland fell 5% after the agribusiness company's fiscal second-quarter earnings plummeted 89% tied to a large writedown related to an Iowa facility and the company experienced weakness in three of its major segments.
United Parcel Service fell 1.5% after the company reported better-than-expected fourth-quarter earnings and provided an upbeat 2012 outlook.
Eli Lilly gained 0.6% after the drug maker exceeded fourth-quarter earnings and revenue expectations and confirmed its 2012 outlook.
Biogen Idec rose 0.7% after the biopharmaceutical company's fourth-quarter results exceeded forecasts, though its 2012 earnings outlook fell short.
Stocks initially got a lift from Europe, after leaders of 25 of the 27 European Union governments agreed on a pact to move closer to fiscal union, and signed off on a permanent bailout fund for the 17-nation euro zone.
Talks between Greece and its private creditors over a debt restructuring appeared to make progress. The Stoxx Europe 600 rose 0.8%.
Asian bourses were mostly higher, with Japan's Nikkei Stock Average rising 0.1% after better-than-expected industrial production data for December, and with China's Shanghai gaining 0.3%.
Gold futures gained 0.1% to $1736.00 an ounce, while crude oil futures climbed 0.1% to $98.82 a barrel. The U.S. dollar lost rose against the euro, but edged lower against the yen.
wsj.com
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