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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Also, U.S. home prices jumped 12.2 percent in May from a year earlier, the most in seven years, according to real estate data provider CoreLogic. The increase suggests the housing recovery is strengthening.Skip to next paragraph
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When trading resumes Friday, investors will turn their attention to a key gauge of the economy — the government's monthly employment report.
Economists forecast that the U.S. economy added 165,000 jobs in June, according to data compiled by FactSet. The Dow surged 200 points June 7 after the Labor Department said that U.S. employers added 175,000 jobs in May. The Federal Reserve has said the jobs market will be critical in determining when it ends its bond buying, which has kept interest rates low and driven a surge in stocks this year.
Investors and traders are also starting to think about corporate earnings, which begin in earnest next week. While corporate profits have reached record levels, most of the gains have come from cutting costs rather than increasing sales.
"We're in the middle of a transition," said Chris Wolfe, chief investment officer at Merrill Lynch Private Banking and Investment Group. "You would expect to see, over the balance of this year and going into next year, somewhat stronger macroeconomic data that translates directly into stronger corporate revenue growth."
Alcoa, the first company in the Dow to report earnings, will release its second-quarter results after the market closes July 8.
In government bond trading, the yield on the 10-year Treasury note was unchanged at 2.48 percent.
In other trading, the price of gold fell $12.30, or 1 percent, to close at $1,243.40 an ounce.
Among stocks making big moves:
— Zynga jumped 20 cents, or 6.5 percent, to $3.27 after the troubled maker of "FarmVille" and other online games said CEO Mark Pincus would step aside. The company's stock is down almost 70 percent since its 2011 initial public offering at $10 per share.
— Achillion Pharmaceuticals fell $2.10, or 25.1 percent, to $6.26 after the drug developer said regulators Monday placed a hold on an early-stage study involving its potential hepatitis C treatment.
— DaVita HealthCare Partners fell $7.15, or 5.9 percent, to $114, after the government proposed cutting the rates of Medicare payments to dialysis service providers.
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