Stocks Finish Mixed

Indexes were little changed Tuesday as strength in financial shares was offset by weakness in industrials

U.S. stocks finished mixed Tuesday afternoon, with strength in financial shares offset by weakness in industrials, driven by a drop in shares of Dow component Boeing (BA).

May existing home sales rose, but Tuesday's overall housing data were a mixed bag, notes S&P MarketScope.

On Tuesday, the 30-stock Dow Jones industrial average finished lower by 16.10 points, or 0.19%, at 8,322.91. The broad Standard & Poor's 500-stock index gained 2.06 points, or 0.23%, to 895.10. The tech-heavy Nasdaq composite index shed 1.27 points, or 0.07%, to 1,764.92.

On the New York Stock Exchange, 15 stocks were lower in price for every 14 that advanced. Nasdaq breadth was 14-11 negative. Trading was moderate.

Treasuries were higher in price ahead after a well-received auction of two-year notes attracted foreign buyers. The dollar index fell. Gold futures were up. Crude oil futures were higher ahead of Wednesday's weekly U.S. inventory data.

European indexes finished mixed Tuesday. London stocks fell 0.10%, Frankfurt rose 0.29%, and Paris stocks fell 0.21%.

Asian markets ended solidly lower. Tokyo stocks fell 2.82%, Hong Kong fell 2.89%, and Shanghai dipped 0.12%.

S&P doesn't see Wednesday's durable goods orders and new home sales data as big market movers. THe market's main focus will be on the outcome of the two-day Federal Reserve policy meeting, which kicked off Tuesday.

President Obama told reporters at a news conference Tuesday he would "not make news" on Fed Chairman Ben Bernanke's reappointment. Obama said the Fed chief has done a "fine job" under difficult circumstances, but he qualified that by saying all regulators fell short and the Fed didn't do all that was necessary to anticipate systemic risk.

Bernanke will defend his unprecedented actions to prevent a financial collapse as debate on whether he should be reappointed begins, Bloomberg News reports. Bernanke, whose term expires Jan. 31, faces lawmakers at a hearing this week on steps to aid Bank of America's (BAC) takeover of Merrill Lynch as Congress increasingly questions the Fed's interventions.

Market sentiment was lifted somewhat Tuesday by news that ratings agency Moody's upheld the U.S. government's AAA rating, though it did say both the U.S. and U.K. could be subject to downgrades if steps were not taken to rein in fiscal deficits.

Among companies in the news Tuesday, Dow component Boeing (BA) was down after delaying the maiden flight of its 787 Dreamliner.

Tech company Rambus (RMBS) sank after cutting its sales outlook and announcing a sale of convertible notes.

Thomson Reuters (TRI) shares moved higher after the company announced plans to unify its dual listed company (DLC) structure. If unification is approved, Thomson Reuters will remain listed on the Toronto Stock Exchange and New York Stock Exchange and will no longer be listed on the London Stock Exchange and Nasdaq. Thomson Reuters believes this will simplify the company's capital structure. The company also reconfirmed its full-year guidance including revenue growth.

Steelcase Inc. (SCS) posted breakeven fiscal first quarter results, vs. earnings per share (EPS) of $0.16 one year earlier, on a 33% revenue decline. Wall Street was looking for a loss of $0.13-$0.14. The company sees approximately breakeven second-quarter results, with revenue of about $600 million.

Bank of America/Merrill reportedly upgraded its rating on shares of Motorola (MOT) to buy from neutral.

JP Morgan reportedly upgraded its rating on shares of FedEx Corp. (FDX) to overweight from neutral.

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