NEW YORK — Stocks mostly fell Tuesday as mixed reports on home prices and consumer confidence gave investors little incentive to step into the market.
Rising energy stocks and a decision by IBM to double its stock-repurchase plan propped up the Dow Jones industrials, but the Nasdaq composite index slid after Chinese Internet-search company Baidu warned that its revenue could take a hit as it switches its advertising system.
Two stocks fell for every one that rose at the New York Stock Exchange.
Bond prices rose after strong demand at a government debt auction, signaling that investors are still seeking safety.
Stocks rose at the start of trading following a report that home prices in 20 major metropolitan markets increased for the third straight month in August. The Standard & Poor’s/ Case-Shiller home-price index gained 1 percent in August from July.
However, the gains in home prices couldn’t offset the Consumer Confidence Index’s second-lowest reading since May.
While data on consumer confidence can be volatile, the drop-off still took some of the sheen off corporate profit reports for the July- September quarter, which have been coming in ahead of expectations.
“When I look at the consumer, I think that is the next big test,” said Dave Hinnenkamp, chief executive of KDV Wealth Management in Minneapolis. “We’ve passed a big test on the earnings front.”
The Dow rose 14.21, or 0.1 percent, to 9,882.17. The broader Standard & Poor’s 500 index fell 3.54, or 0.3 percent, to 1,063.41, while the Nasdaq fell 25.76, or 1.2 percent, to 2,116.09.
Bond prices rose after a Treasury Department auction of $44 billion in two-year notes drew robust demand.
