New York: US stocks closed mostly lower on Tuesday as differing views on whether the market can build on recent gains stalled the S&P 500's six-day winning streak.
The Dow industrials eked out a small gain to set a fresh 13-month high as cautious statements on the economic outlook from several Fed officials underscored the belief that easy monetary policy will remain intact well into next year.
"There's a lot of conflicting signals as to whether we get a sharp year-end rally with money pouring in, or whether we start to see profit-taking as investors look ahead to a potential jobless recovery in 2010," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
The Dow Jones industrial average gained 20.03 points, or 0.20 per cent, to end at 10,246.97. The Standard & Poor's 500 Index shed 0.07 of a point, or 0.01 per cent, to 1,093.01. The Nasdaq Composite Index dropped 2.98 points, or 0.14 per cent, to close at 2,151.08.
Shares of Dow component American Express Co rose 1.6 per cent to $39.68 after the company said credit card spending increased in October from September in another sign that the worst of the financial crisis may be over for the largest US credit-card company.
Home builders' shares took a hit, with the Dow Jones home construction index down 2 per cent after data from the National Association of Realtors showed home prices fell in the third quarter from year-ago levels in about 80 per cent of US cities.
DR Horton Inc fell 3.6 per cent to $11.69 and KB Home dropped 3.3 per cent to $14.68.
Among financials, MBIA Inc's shares plummeted 26.7 per cent to $3.52 a day after the bond insurer posted a third-quarter loss.
Regional bank Zions Bancorp tumbled 7.6 per cent to $13.26 and the KBW bank index fell 1.4 per cent.
On the upside, Monsanto Co shares rose 5.2 per cent to $73.66 after the company said it had raised expectations for accelerated launches of new products.
American International Group rose 3.9 per cent to $37.59 after ratings agency Moody's Investors Service said the insurer probably will be able to repay the government's bailout and much of its preferred equity stake.
Shares of online travel agency Priceline.com jumped 17.6 per cent to $204.22 a day after the company reported earnings that beat forecasts.
Volume was light on the New York Stock Exchange, with 1.07 billion shares changing hands, below last year's estimated daily average of 1.49 billion. On the Nasdaq, about 2.01 billion shares traded, below last year's daily average of 2.28 billion.
Declining stocks outnumbered advancing ones on the NYSE by a ratio of about 3 to 2, while on the Nasdaq, nearly two stocks fell for every one that rose.
