Blue-chip stocks fell yesterday with home improvement giant Home Depot souring Wall Street's mood after it forecast softening earnings.
The Dow Jones Industrial average fell 91.91 points to end at 10,586.37 according to the latest data, while the technology-heavy Nasdaq composite index edged up 2.41 points to 2,770.90.
Stocks started higher, but the modest gains were wiped out after a report said consumer confidence was the lowest since June 1996.
"The economy is in process of continuing to slow and I think that took some of the starch and steam out of enthusiasm for owning equities," said Tom Sparico, managing director of equities at Bengal Partners, as the market pulled off its high.
The University of Michigan's preliminary January consumer sentiment index slid unexpectedly to 93.6, well below last month's 98.4.
The data was a "reality shampoo", according to one hedge fund trader. Wall Street was expecting a slight rise in the index after the Federal Reserve surprised Wall Street on January 3 with a half-point interest rate cut to rev up the US economy.
