Stocks ended the day mixed on Tuesday, gyrating between early gains and midday losses after Spain’s prime minister dashed hopes that a financial bailout was on the way.
The Dow Jones industrial average closed at 13,482.36, down 32.75 points or 0.2 per cent – down more than 85 points from its earlier high, but more than 50 points above its intraday low. The broader S&P 500 closed at 1445.75, up 1.26 points or 0.1 per cent. In Canada, the S&P/TSX composite index closed at 12,391.23, up 21.04 points or 0.2 per cent.
The moves follow a disappointing twist in Europe. Markets had been expecting a request from Spain for a financial bailout from the euro zone, which is seen as a necessary step in stabilizing the debt crisis there. But Spain’s prime minister said in a press conference that a request for aid was not imminent.
In Australia, the central bank cut the country’s key interest rate by a quarter of a percentage point, partly a response to slowing economic activity in China – Australia’s biggest export market.
There was good news, though: In the United States, the CoreLogic house price index rose 4.6 per cent in August, over last year. That marked the biggest year-over-year increase in home prices since July 2006.
Among U.S. homebuilders, Toll Brothers rose 0.8 per cent and PulteGroup Inc. rose 1.8 per cent.
Chipotle Mexican Grill Inc. fell 4.2 per cent after influential hedge fund manager David Einhorn recommended betting against the stock, arguing that customers prefer Taco Bell’s Cantina Bell menu.
Research In Motion Ltd. continued its winning ways, rising 6 per cent. The stock has been on a tear since it reported better-than-expected quarterly results in September. The shares have risen nearly 34 per cent since touching a low on Sept. 24.
Among commodities, crude oil fell to $91.89 (U.S.) a barrel, down 59 cents. Gold fell to $1,775.60 an ounce, down $7.70. Among Canadian commodity producers, Suncor Energy Inc. rose 0.9 per cent and Barrick Gold Corp. fell 0.5 per cent.