By DONALD H. GOLD, INVESTOR’S BUSINESS DAILY
After a promising morning of substantial gains, stocks reversed lower Tuesday and ended with losses.
The S&P 500 fell 0.6%, the Dow Jones industrial average 0.5% and the Nasdaq 0.3%. Volume rose, according to preliminary figures.
The S&P 500 and the Dow had each climbed as high as 0.5%, while the Nasdaq tacked on 1% before the selling began in earnest.
After failing to cobble together a coalition government, Greece now faces a new election next month. At issue, of course, is the country’s dire straits and the austerity measures enacted to try and right Greece’s finances.
German Finance Minister Wolfgang Schaeuble said the vote is really a referendum on Greece’s membership in the euro zone.
Economic news in the U.S. was a mixed bag.
The New York Federal Reserve’s Empire State Manufacturing index jumped to 17.1, reversing a slump to 6.6 in April. Analysts had expected a gain to 10. The Fed described the gain as moderate, but said the shipments index shot up 18 points to 24.1.
Retail sales slowed sharply in April, rising 0.1%, down from March’s 0.8% gain and below analyst views for a 0.1% gain, or 0.2% excluding autos.
April consumer prices also were flat, down from a 0.3% increase in March. Energy and food prices accounted for a large share of the pullback, the Bureau of Labor Statistics reported. Core CPI, minus energy and food, rose 0.2%, equal to March’s gain.