NEW YORK (Reuters) – Stocks were little changed on Tuesday as stronger commodity-related shares were offset by concerns about a slowdown in industrial growth.
Both U.S. crude and Brent futures rose more than 2 percent after Goldman Sachs raised its forecast for oil, citing strong fuel demand growth.
The energy sector, which was one of the weakest on Monday due to concerns about Europe’s debt crisis, led the day’s gains, while industrial stocks pushed the market down for a second day.
Occidental Petroleum (OXY.N), the fourth-largest U.S. oil company, rose 2.7 percent while the Energy Select Sector SPDR ETF (XLE.P) was 2.3 percent higher.
Following much weaker-than-expected New York and Philly Fed manufacturing surveys last week, the Richmond region reported an outright contraction as their index fell, the first negative reading since Sept, according to Peter Boockvar, equity Strategist at Miller Tabak + Co in New York.
«The Richmond survey is never market moving as it’s not widely followed. But it’s another piece in the anecdotal puzzle of the moderation seen in manufacturing in May, with the obvious hope that it’s just a mid-cycle misstep before the next acceleration,» he said.
The Dow Jones industrial average (.DJI) was up 5.23 points, or 0.04 percent, at 12,386.49. The Standard & Poor’s 500 Index (.SPX) was up 2.55 points, or 0.19 percent, at 1,319.92. The Nasdaq Composite Index (.IXIC) was down 0.80 point, or 0.03 percent, at 2,758.10.
The market closed at its lowest in a month on Monday.
Copper prices rallied, gaining 1.5 percent after Goldman forecast an increase in Chinese purchases in the coming months. Gold prices rose 0.6 percent while the U.S. dollar index (.DXY) fell 0.2 percent.
Data showed new U.S. single-family home sales rose unexpectedly in April to notch their second straight month of gains, but analysts said home builders still have a bumpy ride ahead.
«There’s still a tremendous overhang in the housing market, and while new home sales are starting to percolate, that doesn’t change the fact that we still have such huge inventory,» said Michael Yoshikami, president and chief investment strategist at Ycmnet Advisors in Walnut Creek in California.
On the Nasdaq, Russian Internet company Yandex NV (YNDX.O) surged in its debut, opening at $61 per share, well above its offering price of $25 per share. The shares were currently trading up 27 percent at $31.70.
The U.S. Treasury is expected to sell 15 percent of its stake in American International Group Inc (AIG.N) when the insurer prices its stock offering after the market closes. AIG was down 1.2 percent at $29.61.