Business Highlights

Consumer confidence unexpectedly falls in Sept.

Concerns that consumers won't help drive a speedy and strong economic recovery only escalated Tuesday after an influential barometer of confidence fell unexpectedly in September.

The Conference Board, a private research group, said its confidence index dipped to 53.1 in September, down from a revised 54.5 in August. Economists surveyed by Thomson Reuters had expected a reading of 57.

The report followed rosier data on housing released Tuesday that showed home prices rose for the third month in a row in July. Investors fixated on the confidence report, giving back early gains. The Dow Jones industrials fell 47.16, or 0.5 percent, to 9,742.20.

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Drop in consumer confidence weighs on stocks

NEW YORK (AP) — A surprise drop in consumer confidence tripped up investors Tuesday, a day after two corporate takeovers set off a steep market rally.

Stocks broke a three-day losing streak Monday after news of several big acquisitions signaled to investors that corporate America is feeling more confident about the economy and willing to take on more risk. The disappointing decline in consumer confidence Tuesday was a stark reminder that American consumers aren't as upbeat, meaning they're likely to keep their spending in check.