Updated from 4:04 p.m. EDT
Stocks ended lower Tuesday despite fairly positive news on the economic front, and the
Dow Jones Industrial Average finished the session back under the 10,000 mark.
The Dow closed with a loss of 122.68 points, or 1.2%, to 9981.58. The
Nasdaq fell 9.32 points, or 0.6%, to 1652.17, and the
S&P 500 dropped 9.27 points, or 0.9%, to 1074.55.
Before the opening bell, the Commerce Department said April
personal income rose 0.3%, while spending was up 0.5%. The latter was slightly below expectations.
In another report, the National Association of Realtors said
existing-home sales rose 7% in April to a seasonally adjusted rate of 5.79 million units. Analysts polled by
were looking for a 5.40 million sales rate. Separately, the Conference Board said its
consumer confidence index climbed to 109.8 in May from 108.5 in April. The index reading was slightly below the consensus forecast.
As federal prosecutors step up their inquiries into so-called round-trip energy trades by various U.S. power merchants,
said Chuck Watson would be the second corporate chairman to lose his job to the scandal in as many business days. Watson will be replaced on an interim basis by an executive from Dynegy stakeholder
while a successor is sought.
The company and
confirmed over the weekend that they have received subpoenas from U.S. attorney's offices into the round-trip trades. On Friday,
said its chairman and CEO, William McCormick, was also stepping down. Dynegy's shares climbed 4% to $9.69.
In the telecommunications space,
, Europe's largest mobile network operator, reported better-than-expected results for its fiscal year due to strong underlying growth, but the company's shares lost 6% at $15.19.
A big U.S. telecom company also traded down.
( FON) fell 2.6% to $16.70 after analysts at UBS Warburg lowered their investment rating on the stock to hold from buy and cut their 12-month price target to $18 from $20. Sprint, the No. 3 long-distance telephone company, also named Christian Moeller president of its European operations.
That wasn't the only negative research note that had investors fretting. UBS also cut its rating on home improvement products seller
to hold from buy, saying that aggressive changes and a new management team would have a negative impact on sales. The stock fell 4.3% to $41.54.
Additionally, Merrill Lynch trimmed its second-quarter and full-year earnings forecast on chip heavyweight
, saying it hasn't seen any improvement from the previous quarter. Intel's shares slipped 1.1% to $28.35.
( ADLAE) was once again among the most active stocks on the Nasdaq, falling 28% to $2 after the cable company revealed some questionable arrangements made with the Rigas family involving multibillion dollar loans and rent-free apartments. Another troubled company of late,
, dropped 19% to $1.34 after announcing that it has
fired independent auditor KPMG.
announced that it has settled a group of 30 asbestos claims involving pending lung cancer cases in New York. Financial terms of the settlement weren't disclosed, but the company said the results were near the historical averages for these types of claims. Halliburton was up 1.3% to $19.35.
Treasuries were flat to slightly higher around 4 p.m. EDT. The 10-year note stood at 98 3/32, up 2/32 and yielding 5.13%.
Euopean markets were weaker. London's FTSE 100 was down 1.2% to 5074, and Germany's Xetra DAX lost 0.9% to 4919. In Asia, Japan's Nikkei 225 fell 0.3% to 11,936, while Hong Kong's Hang Seng finished up 0.2% to 11,582.