U.S. stocks were mixed in trading on Tuesday, but the leading indexes ended the month higher. On Tuesday, the Dow Jones Industrial Average was lower at 17,787.13 for a loss of 86.09 points or 0.48%. In the Dow Jones Industrial Average losses were led by DuPont (DD, Financial), down 2.4%. The Standard & Poor's 500 was also lower for the day, closing at 2,096.95 for a loss of 2.11 points or 0.10%. The Nasdaq Composite was higher for the day at 4,948.05 for a gain of 14.55 points or 0.29%. The VIX Volatility Index was higher for the day at 14.26 for a gain of 1.14 points or 8.69%.
For the month, the Dow Jones Industrial Average gained 0.05%, and the S&P 500 Index gained 1.52%. The Nasdaq Composite was also higher with an increase of 3.58%.
The Commerce Department’s Personal Income and Outlays report for Tuesday increased volatility for the day as data moved closer to the Fed’s target levels. Personal income increased in April at consensus for the month of 0.4%. Consumer spending was higher than expected at 1.0% versus consensus of 0.7%. The PCE Price Index showed a monthly gain of 0.3% at consensus and the Core PCE Index was also at consensus for a monthly gain of 0.2%. The April PCE Price Index showed an annual increase in prices of 1.1% and annual inflation for the Core PCE Price Index was 1.6%. With the Fed’s inflation objective of 2%, both annual inflation data levels will be factors for the Fed’s June meeting.
The housing market also continued to show gains. The S&P Case-Shiller Home Price Index reported on Tuesday home prices increasing with the 20-city seasonal average for home prices up 0.9% from the previous month, above consensus of 0.7%. The 20-city nonseasonal annual average was also higher, reporting a gain of 5.4% which was above consensus of 5.1%.
In a CNBC interview Tuesday, market specialists discussed the housing market’s data and why housing market stocks are not gaining greater momentum in the current market.
