Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

U.S. stocks mixed on GDP, consumer confidence reports; Dow dips 0.02%

Published 11/25/2014, 04:35 PM
Updated 11/25/2014, 04:37 PM
Stocks rise on U.S. growth rate, dip on slumping consumer confidence

Investing.com - U.S. stocks finished Tuesday mixed after investors applauded a better-than-expected gross domestic product report, though disappointing data on consumer confidence allowed for profit taking.

At the close of U.S. trading, the Dow 30 fell 0.02%, the S&P 500 index fell 0.12%, while the Nasdaq Composite index rose 0.07%.

The S&P 500 VIX index, which measures the outlook for market volatility, was down 3.01% at 12.24.

The Commerce Department reported earlier that U.S. gross domestic product grew at a seasonally adjusted annual rate of 3.9% in the third quarter, topping expectations for a reading of 3.3%.

Preliminary data initially pegged U.S. growth at 3.5% in the third quarter. The U.S. economy expanded by 4.6% in the preceding quarter.

The data showed personal consumption rose 2.2% in the third quarter, beating expectations for a 1.9% gain and up from a preliminary estimate of 1.8%.

Consumer spending typically accounts for nearly 70% of U.S. economic growth, and the upbeat growth report pressured stocks higher, though a disappointing gauge on consumer confidence erased earlier gains.

The Conference Board market research group reported earlier that its consumer confidence index fell to 88.7 this month from 94.1 in October, whose figure was revised down from a previously reported 94.5.

Analysts expected the index to increase to 95.9 in November.

The Present Situation Index declined from 94.4 to 91.3, while the Expectations Index decreased sharply to 87.0 from 93.8 in October.

Commenting on the report, director of The Conference Board Consumer Research Center Lynn Franco said, “Consumers were somewhat less positive about current business conditions and the present state of the job market; moreover, their optimism in the short-term outlook in both areas has waned."

Leading Dow Jones Industrial Average performers included United Technologies Corporation (NYSE:UTX), up 2.70%, Visa Inc (NYSE:V), up 1.23%, and Walt Disney Company (NYSE:DIS), up 1.19%.

The Dow Jones Industrial Average's worst performers included Home Depot Inc (NYSE:HD), down 1.39%, Chevron Corporation (NYSE:CVX), down 1.20%, and JPMorgan Chase & Co (NYSE:JPM), down 1.07%.

European indices, meanwhile, ended the day higher.

After the close of European trade, the Euro Stoxx 50 rose 0.45%, France's CAC 40 rose 0.32%, while Germany's DAX 30 rose 0.77%. Meanwhile, in the U.K. the FTSE 100 rose 0.02%.

On Wednesday, the U.S. is to release a flurry of data ahead of Thursday’s holiday, including reports on durable goods orders, unemployment claims, personal income and spending, as well as reports on new and pending home sales and revised data on consumer sentiment.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.