Weaker-than-expected consumer confidence reversed early stock gains fueled by strong corporate earnings on Tuesday, leaving indexes slightly lower.
Despite the weakness, the S&P 500's upward momentum was intact as key levels held.
Consumer confidence fell in July to its lowest point since February, weighed by worries about the job market, according to a report by the Conference Board.
DuPont & Co
It has taken investors a bit to catch on to the sentiment that earnings are in fact pretty good, said Bruce Zaro, chief technical strategist at Delta Global Advisors in Boston. (The pause) is healthy and it's not a sign as of this point that this rally has run its course.
The Dow Jones industrial average <.DJI> shed 9.99 points, or 0.09 percent, to 10,515.44. The Standard & Poor's 500 Index <.SPX> dropped 3.55 points, or 0.32 percent, to 1,111.46. The Nasdaq Composite Index <.IXIC> fell 10.50 points, or 0.46 percent, to 2,285.93.
The S&P 500 hit a session high near 1,120, around the midpoint between its 2007 historic high and 12-year lows hit in 2009. That retracement is seen by analysts as a strong technical resistance.
Other technical analysis, including the moving average convergence-divergence and momentum, continued to show bullish signals for the three major indexes.
Corporate results indicated the economy was on a better footing than many had expected, analysts said.
Cummings Inc , the engines and power-generation equipment maker, shot up 2 percent to $79.38 after reporting stronger-than-expected quarterly results and raising its annual forecast on strong demand overseas.
Home prices in major U.S. metropolitan areas rose more than expected in May, offering some reassurance after recent weak housing data pointed to a softening in the housing market.
(Editing by Jeffrey Benkoe)