US stocks edged lower on Tuesday as a report showed consumer confidence fell unexpectedly in October, while warnings about future financial results from companies, including Texas Instruments Inc, and a jump in oil prices hurt investor sentiment.
But the blue chip Dow average pared heavy losses late in the session, helped by gains in shares of DuPont Co.
The No 2 US chemicals maker reported better-than-expected quarterly results and announced a $5 billion share buyback. Its shares rose 3 percent to $40.80 on the New York Stock Exchange.
US crude oil prices shot up more than $2 a barrel as cool weather in parts of the United States raised concerns about a possible early winter and its effects on energy demand.
The drop in the consumer confidence index, seen as a barometer of household spending, was followed by declines in retail stocks. The S&P retail index , down 1.7 percent, registered its biggest one-day point drop in more than a month.
"The consumer confidence number dropping gave people a bit of a surprise," said Ray Rund, managing director and head of research at ShakerInvestments.
The Dow Jones industrial average slipped 7.13 points, or 0.07 percent, to end at 10,377.87. The Standard & Poor's 500 Index dipped 2.84 points, or 0.24 percent, to close at 1,196.54. The technology-laced Nasdaq Composite Index fell 6.38 points, or 0.30 percent, to finish at 2,109.45.
Tuesday's slight pullback followed a sharp rally on Monday when the Dow and the S&P 500 had their biggest one-day point gains in six months after the president named White House economic adviser Ben Bernanke to succeed Alan Greenspan as Federal Reserve chairman.
The Conference Board, an industry group, said its index of consumer sentiment fell in October to 85.0 from a September reading of 87.5. A Reuters poll of economists had forecast the index to rise to 88.1. Consumer spending accounts for about two-thirds of US economic activity.
Texas Instruments Inc, the world's largest maker of chips used in mobile phones, said third-quarter earnings rose, but it forecast a fourth-quarter revenue shortfall late on Monday. Its shares slid 7.7 percent, or $2.37, to $28.55 on the NYSE and were the biggest negative influence on the broad S&P 500 index.
US crude oil prices rose $2.12 to settle at $62.44 a barrel. That helped push stocks down, said Stephen Massocca, head of trading and president of San Francisco-based investment bank Pacific Growth Equities. Higher oil prices raise costs for households and corporations.
Shares of programmable chipmaker Altera Corp fell 7.3 percent, or $1.30, to $16.48 on the Nasdaq after the company said on Monday its quarterly profit slipped.
Trading on the NYSE was heavy, with 1.71 billion shares changing hands, above the 1.46 billion daily average for last year. About 1.63 billion shares were traded on Nasdaq, below the 1.81 billion daily average last year.
The number of stocks declining outpaced those advancing by about 5 to 3 on the NYSE. On Nasdaq, decliners led advancers by about 3 to 2.