NEW YORK — Mixed economic news and light trading led stocks to close barely changed Tuesday. Consumer confidence surged to an eight- month high, but home prices dropped in major cities. Sears plummeted after reporting that it would close more than 100 stores around the country.
In the latest sign of a bumpy recovery in the housing market, home prices fell in 19 of the 20 metro areas tracked by the Standard & Poor’s/ Case-Shiller index. Atlanta, Detroit and Minneapolis posted the biggest declines. Prices in Atlanta and Las Vegas fell to their lowest points since the housing crisis began.
That report dampened investors’ enthusiasm about a jump in consumer confidence to the highest level since April. The New York-based Conference Board reported that its Consumer Confidence Index rose almost 10 points to 64.5 in December. Economists watch the numbers closely because consumer spending accounts for about 70 percent of U.S. economic activity.
Henry Herrmann, chief executive at investment-management firm Waddell & Reed, said the increase reflected the fact that more jobs have been created in recent weeks, which will likely lead to “a more sustained” economic recovery.
“If job creation will come with wage improvement in the coming weeks, it will boost confidence further,” Herrmann said.
The Dow Jones industrial average closed down 2.65 points, or 0.02 percent, at 12,291.35. The S&P 500 was up 0.10 points, or 0.01 percent, to 1,265.43. The Nasdaq composite rose 6.56, or 0.3 percent, to 2,625.20.
The most the Dow rose during the day was 34 points, and the most it fell was 24. It was the narrowest trading range in five months. Stocks are expected to trade within a narrow range through New Year’s. The volume of shares traded on the New York Stock Exchange on Tuesday was 2 billion, less than half the average daily volume this month.
A run of strong economic data in the U.S. has boosted the stock market in recent days. However, analysts expect any gains to be tempered by worries over the European debt crisis.
Italy’s borrowing costs rose Tuesday, reflecting a continued high level of investor anxiety. The yield on the country’s 10-year bonds hit 7 percent again, which is considered unsustainable in the long run. Greece, Ireland and Portugal had to seek relief from their lenders after their own borrowing costs rose that high.
