Wall St fluctuates as US consumers lose confidence

Specialist Wingszi Chiang, left, works with traders at her post on the floor of the New York Stock Exchange. File photo / AP

Wall Street fluctuated overnight, with the Standard & Poor's 500 Index touching a record high, as a report showing the US economy grew more than initially forecast in the third quarter offset data showing an unexpected drop in American consumer confidence.

A Commerce Department report showed third-quarter gross domestic product expanded at a 3.9 per cent annual pace, up from a previous estimate of 3.5 per cent.

"This report will go some way in providing further confirmation about the sustainability of the current economic recovery," Millan Mulraine, deputy chief economist at TD Securities in New York, told Reuters.

Even so, a separate report showed consumer confidence slid to 88.7 this month, down from a revised 94.1 in October.

"Consumer confidence retreated in November, primarily due to reduced optimism in the short-term outlook," Lynn Franco, director of economic indicators at The Conference Board, said in a statement.

"Consumers were somewhat less positive about current business conditions and the present state of the job market; moreover, their optimism in the short-term outlook in both areas has waned. However, income expectations were virtually unchanged and gas prices remain low, which should help boost holiday sales."

Pending Black Friday sales later this week will provide an even more current read on consumer sentiment heading towards the year-end holiday season.

Another report showed the S&P/Case-Shiller index of property values rose 4.9 per cent in the twelve months through September, slowing from a 5.6 per cent pace in the year ended in August.

In afternoon trading in New York, the Dow Jones Industrial Average rose 0.11 per cent. The Standard & Poor's 500 Index gained 0.06 per cent, while the Nasdaq Composite Index advanced 0.13 per cent. Earlier in the session the S&P 500 touched a record high 2,074.21.

In the Dow, gains in shares of United Technologies and those of UnitedHealth, up 2.3 per cent and 1.1 per cent respectively, outweighed slides in shares of Home Depot and those of JPMorgan Chase, down 1.8 per cent and 1.1 per cent respectively.

In early trade, shares of Apple edged higher, lifting the iPhone maker's market cap to more than US$700 billion - the first company ever to breach that mark. Its shares were down 0.2 per cent in afternoon trade. The company is forecasting record sales in the current quarter.

"Valuations are a bit stretched, but as long as fundamentals continue to move forward investors will find a way to keep moving prices higher," Bruce McCain, chief investment strategist at Key Private Bank in Cleveland, Ohio, told Reuters.

Shares of Tiffany & Co rose, last up 2 per cent, after the company posted quarterly sales that showed strength in the Americas made up for weakness in Asia.

"We were pleased with overall sales performance, especially in light of economic and geopolitical challenges around the world," Michael Kowalski, chief executive officer, said in a statement.

In Europe, the Stoxx 600 finished the session with a 0.2 per cent increase from the previous close. The UK's FTSE 100 Index eked out a 0.02 per cent gain, France's CAC 40 added 0.3 per cent, while Germany's DAX Index rose 0.8 per cent.