For all of Tuesday’s good news, one little statement went a long way in the other direction.
The Case-Shiller Home Sales Index showed home prices jumped 3.6% in the third quarter, the biggest increase since the second quarter of 2010. We also got a better-than-expected reading on consumer confidence from The Conference Board, and new orders for durable goods (excluding transportation goods) were up 1.5%.
Plus in Europe, eurozone finance ministers and the International Monetary Fund reached an agreement that moves Greece closer to receiving a massive bailout payment.
Yet a remark by Senate Majority Leader Harry Reid about the “little progress” made on avoiding the year-end cliff was enough to send the markets in retreat. The Dow Jones finished down 0.69% at 12,878.13, the S&P 500 lost 0.52% to end at 1,398.94, and the Nasdaq ended lower by 0.3% to 2,967.79.
Hewlett-Packard (NYSE:HPQ) was one of the Dow’s biggest weights, losing nearly 3% as it continues to suffer the effects of its $8.8 billion Autonomy write-down. HP now has been threatened with shareholder lawsuits related to the deal.
McMoRan Exploration (NYSE:MMR) added more losses Tuesday following Monday’s report that testing at its huge Davy Jones fields proved inconclusive. MMR has lost nearly a third of its value in just two days.
Monster Beverage (NASDAQ:MNST) soared more than 13% after news that concerns over a regulatory restraint on energy drinks might not be as significant as originally feared, and the FDA is not planning on any immediate action.
Footwear maker Crocs (NASDAQ:CROX) shares rose nearly 10% after Goldman Sachs (NYSE:GS) initiated coverage on the name with a “buy” rating and $17 price target. Shares closed at $13.50 on the day.
Lastly, food giant ConAgra (NYSE:CAG) reached a deal to buy private-label food manufacturer Ralcorp (NYSE:RAH) for $90 per share in cash — a 28% premium on RAH shares. CAG got a bump of just less than 5% by Tuesday’s close.
Three Up
- Broadsoft (NASDAQ:BSFT): Up 7.97% ($2.40) to $32.53.
- Corning (NYSE:GLW): Up 6.87% (78 cents) to $12.13.
- Knight Capital (NYSE:KCG): Up 5.32% (15 cents) to $2.97.
Three Down
- Research In Motion (NASDAQ:RIMM): Down 10.52% ($1.26) to $10.72.
- Vringo (AMEX:VRNG): Down 6.13% (23 cents) to $3.52.
- Nokia (NYSE:NOK): Down 5.65% (19 cents) to $3.17.
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.
