* Retailers, housing data weigh on markets
* Final 3rd quarter GDP in line with expectations
* Dow down 0.8 pct, S&P down 0.3, Nasdaq up 1.5 pct
* For up to the minute market news, please click on
[]
By Chuck Mikolajczak
NEW YORK, Dec 23 (Reuters) - Fading hope for a recovery in
the housing market and worry about the outlook for consumer
spending kept U.S. stocks in check on Tuesday, with weakness in
retailers and car makers getting in the way of an early rally.
Major benchmarks held near the unchanged mark after a spate
of data showed home sales down again and the U.S. economy
contracted in the third quarter thanks to the biggest drop in
consumer spending in 28 years.
The gross domestic product figure confirmed that the
economy contracted at an annual rate of 0.5 percent as
economists had expected. For details, see [].
Focus has shifted to the current fourth quarter, which is
expected to be much weaker.
Housing data showed existing home sales plunged 8.6 percent
and new-home sales fell 2.9 percent in November. []
"I think it's a delayed reaction to the housing numbers,"
said Joe Saluzzi, co-manager of trading at Themis Trading in
Chatham, New Jersey.
"The only way to get out of this mess is to see the housing
market improve. The inventory was up. We need the inventory to
go down."
The Dow Jones industrial average <> was down 6.53
points, or 0.08 percent, to 8,513.24. The Standard & Poor's 500
Index <.SPX> slid 0.22 points, or 0.03 percent, to 871.41. The
Nasdaq Composite Index <> was up 2.26 points, or 0.15
percent, to 1,534.61.
General Motors <GM.N> was the top drag on the Dow as
investors contemplate whether the recent aid package from the
U.S government will provide enough of a lifeline for automakers
to avoid bankruptcy.
Shares in General Motors slumped nearly 16 percent to $2.97
while Ford <F.N> fell over 16 percent to $2.17.
Retailers remain in focus in the waning days before the
Christmas holiday, as a survey released on Tuesday showed just
38.7 percent of Americans went shopping during the final
weekend before Christmas, the lowest turnout in at least six
years.
The percentage of Americans shopping this past weekend is
down from 41.6 in 2007, according to the survey by America's
Research Group and UBS.
Shares of Macy's <M.N> fell 5.6 percent to $8.83 while JC
Penney <JCP.N> shed 2.7 percent to $18.26. The S&P Retail index
<.RLX> fell 0.5 percent.
American Greetings <AM.N> reported a third-quarter loss of
$4.25 per share on Tuesday and the greeting card company said
it couldn't provide an outlook due to the deteriorating
economy. []
Shares plummeted over 35 percent to $6.30 on the New York
Stock Exchange.
Commercial finance company CIT Group <CIT.N> jumped nearly
11 percent to $4.63 after it won preliminary approval to
receive $2.33 billion under the government's $700 billion
bailout program.[]
Other companies expected to report earnings Tuesday include
Micron Tech <MU.N> and FSI International <FSII.O>.
With just six trading days remaining in the year, there is
little hope the markets will avoid having their worst yearly
performance since the 1930s. The S&P 500 is down about 40
percent for the year.
(Editing by Leslie Adler)
