Stocks fluctuate after consumer confidence dips, Richmond Fed reports declinein manufacturing

Stocks fluctuate after two economic reports

NEW YORK — Stocks traded in a tight range Tuesday as investors again try to balance conflicting economic and earnings reports to determine the pace of a global recovery.

Another disappointing report on consumer confidence and a slowdown in regional manufacturing activity from the Richmond Federal Reserve tempered the market’s early gains, leaving indexes mixed in midmorning trading. Stocks rose moderately at the open thanks to strong earnings from chemical maker DuPont Co. and European banks UBS and Deutsche Bank.

Investors’ attention span has been somewhat short in recent months, leading to trades that are often dictated by the latest piece of news. Mixed economic and earnings data has also added to volatility.

The Dow Jones industrial average rose 3 points.

The Conference Board, a private research group, said its Consumer Confidence Index slipped to 50.4 in July, down from the revised 54.3 in June. Economists polled by Thomson Reuters had forecast a drop to 51.

Consumer confidence has waned in recent months, largely because of concerns over unemployment. With consumers not as confident as they were just a few months ago, their spending has slowed. Consumer spending accounts for a large portion of the nation’s economy.

Last month, the index posted its largest drop since February, which helped push stocks sharply lower.

Economic reports have regularly disappointed investors, but upbeat earnings and profit outlooks have dictated trading in recent days.

Chemical maker DuPont Co. easily beat second-quarter profit and revenue forecasts and raised its outlook for the year. DuPont joined a growing number of companies whose results have convinced investors that the economy might not be slowing as much as investors thought.

Some major European banks, including UBS and Deutsche Bank, reported strong earnings. The results came a few days after regulators evaluated banks across Europe to see which might have trouble surviving another economic downturn. Major European indexes rose following the earnings and another positive report on Germany’s economy.

In morning trading, the Dow Jones industrial average rose 3.18, or less than 0.1 percent, to 10,527.32. The Standard & Poor’s 500 index fell 0.79, or 0.1 percent, to 1,114.22, while the Nasdaq composite index dipped 5.41, or 0.2 percent, to 2,291.02.

Advancing stocks barely outpaced those that fell on the New York Stock Exchange, where volume came to 233.4 million shares.

The euro briefly rose above $1.30 during morning trading before falling back to $1.2958. It was below $1.20 in early June when investors were more concerned with the health of Europe’s economy.

Stocks fell worldwide in May and June because of worries that mounting government debt across Europe would stall a global recovery. Strong earnings from U.S. and European companies over the past two weeks have helped to ease those concerns.

News on the housing market was mildly upbeat. The S&P/Case-Shiller 20-city home price index for May rose 1.3 percent from April. But the homebuyer’s tax credit that expired April 30 had an impact on the reading, and the report warned that the recent gains in home prices are not likely to last.

The Dow has surged in July, rising 7.7 percent during the month. The sharp gains helped push the index back into the black for the year on Monday. In the past three trading days alone, the Dow has jumped 4 percent because of consistently strong earnings and outlooks.

Stocks got a lift Monday after a report on new home sales rose more than expected last month. The housing market has remained weak, particularly since a tax credit for home buyers expired at the end of April.

Bond prices fell, sending their yields higher. The yield on the 10-year Treasury note rose to 3.03 percent from 2.99 percent late Monday. That yield helps set interest rates on mortgages and other consumer loans.

DuPont shares rose $1.27, or 3.3 percent, to $40.27. Shares of Deutsche Bank trading in the U.S. rose $1.91, or 2.9 percent, to $68.09, while UBS rose $1.04, or 6.9 percent, to $16.18. BP fell $1.23, or 3.2 percent, to $37.42.

Overseas, Britain’s FTSE 100 rose 0.3 percent, Germany’s DAX index gained 0.1 percent, and France’s CAC-40 rose 0.8 percent. Japan’s Nikkei stock average fell 0.1 percent.