NEW YORK — A brighter economic forecast from the Federal Reserve on Tuesday helped stocks pare losses that followed uninspiring reports on consumer sentiment and housing.
The market slipped from 13-month highs in light trading as gains in health-care companies helped offset drops in financial and industrial stocks. The Dow Jones industrial average fell 17 points, one day after jumping by 133.
The market strengthened in afternoon trading as the Fed released minutes from its latest meeting, during which it pledged to keep interest rates low for the foreseeable future and said inflation remained at bay. The Fed raised its expectations for economic growth during the second half of this year but said unemployment will remain high.
That followed the Conference Board’s report that its Consumer Confidence Index rose to 49.5 in November from a revised 48.7 in October. While better than expected, the report shows that consumers remain gloomy heading into the holiday season. A reading above 90 means the economy is on solid footing.
The government also revised its calculation of third-quarter economic growth down to an annualized rate of 2.8 percent from its original estimate of 3.5 percent, the latest sign that the recovery is likely to be slow and bumpy.
“Today, as far as the economic data goes, I think we have a bit of a hung jury,” said Howard Ward, chief investment officer of the Gamco Growth Fund.
On Tuesday, the Dow ended down 17.24, or 0.2 percent, to 10,433.71 after falling as much as 91 points. The Standard & Poor’s 500 index slipped 0.59, or 0.1 percent, to 1,105.65, while the Nasdaq composite index fell 6.83, or 0.3 percent, to 2,169.18.
