U.S. stocks fell on Tuesday after a surprise drop in consumer confidence outweighed a better than expected rise in home prices causing concern for the strength of an economic recovery.
To the figures, the Dow Jones industrial average fell 47 points to 9,742. The S&P500 Index lost 2 points to 1,061 and the NASDAQ dropped 7 points to 2,124.
In economic news: The Conference Board’s consumer confidence index fell to a read of 53.1 in September from 54.5 in August. Economists expected it to rise to a read of 57.
The Case-Shiller 20-city home price index rose 1.6 per cent in July from the month before, beating economists’ expectations. Prices fell 13.3 per cent from a year ago, economists were expecting a drop of 14.2 per cent.
In company news: Shares in bank holding company CIT Group Inc (NYSE:CIT) soared 31.74 per cent to $2.20. According to CNN Money the debt laden company is negotiating a new credit facility that could be worth $10 billion.CNN also says there are reports that CIT could be merged with failed mortgage lender IndyMac.
Shares in diagnostic testing and genetics analysis company Sequenom Inc (NASDAQ:SQNM) plunged 39.19 per cent to $3.46. Following a scandal that involved the mishandling of results and research on the company’s prenatal Down syndrome test, Sequenom saw its shares plummet after revealing it has removed its CEO and management team.
Shares in computer technology company Dell Inc (NASDAQ:DELL) fell 3.19 per cent to $15.17. The company revealed its new super thin personal computer called the Latitude Z. The high-end computer will sell for $1,999.
And shares in drugstore chain Walgreen Company (NYSE:WAG) rose 9.24 per cent to $37.35. The company posted earnings for the quarter that were weaker, but revenue that was higher. Both earnings and revenue beat analyst expectations.
Checking the NASDAQ Top 100: The best performer overnight was Warner Chilcott, rising 2.88 per cent to $21.10, followed by Wynn Resorts and First Solar. On the downside, Liberty Global was the worst performer falling 3.58 per cent to $23.14, followed by IAC InterActiveCorp and Dell.
