US stocks edged lower today, with major indexes retreating slightly from record levels after a reading of consumer confidence unexpectedly fell to its weakest level since June.
By Paolo Palazzi-Xirinachs
Wednesday, November 26, 2014
Wall Street had opened higher, boosted by strong data on economic growth, though sharp gains were difficult to come by in a quiet week following long-running equity advances.
S&P 500 flirts with a record
The S&P 500 fluctuated near an all-time high this morning as the reported unexpected drop in consumer confidence offset faster economic expansion, while Treasuries rose and the USD fell. The S&P 500 slipped 0.1% at 11:34 AM in New York, after three straight days of advances. In Europe the Stoxx Europe 600 Index closed little changed after earlier rising 0.6%. Germany’s Dax Index capped its longest winning streak since May 2013. The yield on 10-year Treasuries fell one basis point to 2.30%. Crude fluctuated before a meeting of oil exporters this week.
US Economy grows more than predicted
The Conference Board’s consumer confidence index fell to 88.7 in November from 94.1 a month earlier data showed before the kick-off of the holiday shopping season. The US economy expanded more than previously forecast in the third quarter amid bigger gains in consumer spending and business investment, the Commerce Department said today. The report gave investors a reason to take profits following recent gains. The S&P has closed higher in 12 of its last 14 sessions, and is coming off five-week streaks of gains. The benchmark index is up more than 13% from an intraday low in mid-October. Germany’s economy, Europe’s largest, gained 0.1% in the three months through September, confirming a Nov. 14 estimate.
Holiday may affect trading
Market moves may be amplified this week by low volume, which is expected with some market participants out for the Thanksgiving holiday. The US stock market will be closed on Thursday and will close early on Friday.
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