Stocks down on unrest in Egypt
Stocks fell slightly Tuesday after reports of intensifying political turmoil in Egypt offset good economic news. Car sales, home prices, and manufacturing pushed stocks up for most of the day but major indexes turned lower in the afternoon.
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Stocks rose most of the day on positive news about car sales, home prices and manufacturing. But major indexes turned lower after 1:40 p.m. Eastern Daylight Time after news emerged that Egypt's military had drawn up plans to suspend the country's constitution, dissolve its legislature and set up an interim government. Millions of protesters are demanding the ouster of President Mohammed Morsi.
The price of oil climbed close to $100 a barrel on concern that the crisis in the largest Arab nation could disrupt the flow of crude from the region.
"It's more or less Egypt unrest," said Sal Arnuk, co-founder of Themis Trading, a brokerage firm that specializes in stocks. "These very large protests are being televised and broadcast — that's spooking people."
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The Standard & Poor's 500 index had climbed as much as 9 points shortly before midday. It then fell as much as 8 points before closing down 0.88 point, or 0.1 percent, at 1,614.08
Trading activity was lighter than normal, influenced by the upcoming July 4 holiday. The stock market will close at 1 p.m. on Wednesday, ahead of the Independence Day holiday on Thursday. The market re-opens Friday.
Crude oil jumped about $1 a barrel after news emerged of the worsening political situation in Egypt. Oil closed up $1.61 at $99.60 a barrel in New York. It last crossed $100 on Sept. 14 of last year.
The market's early gains were driven by a number of strong economic reports.
U.S. June auto sales reached their highest level since 2007. That helped lift Ford'sstock 44 cents, or 2.8 percent, to $16.18.
U.S. factory orders rose in May, helped by a third straight month of stronger business investment.