Stocks miss 13,000, but makes up early losses

ByABC News
February 27, 2012, 5:54 PM

— -- The Dow Jones industrial average narrowly missed 13,000. Again.

After dropping 100 points in the morning, the Dow pushed back above 13,000 by midday Monday after signs that the housing market is making a slow recovery. But a burst of selling at the closing bell drove the Dow lower. The average finished the day about 19 points shy of the mark.

For the day, the Dow lost 1.44 points and closed at 12,981.51. The Standard & Poor's 500 index rose 1.85 points to 1,367.59, a 3 1/2-year high. The Nasdaq composite index rose 2.41 points to close at 2,966.16.

The Dow broke through 13,000 several times last week but couldn't hold that level at the close. It hasn't closed above 13,000 since May 2008.

The National Association of Realtors said its index of sales agreements rose 2% last month to a reading of 97, the highest since April 2010. A reading of 100 is considered healthy.

The association said its index of sales agreements rose 2% last month to a reading of 97 — its highest since April 2010. A reading of 100 is considered healthy. The improving reading was seen as a sign that the housing market is gradually coming back.

Utilities and energy stocks fell.

Scott Wren, senior equity strategist for Wells Fargo Advisors in St. Louis, said investors have gotten ahead of themselves since October. The S&P 500 is up 8.7% this year alone.

He said U.S. economic growth is likely to be a mild 2% this year, there are fewer people working now than there were at the end of 2007, and Europe may be in a recession.

"I don't see any reason for the market to be on some incredible run," he said.

Oil prices fell below $109 a barrel as investors booked profits after a 14% gain this month driven by signs of an improving U.S. economy and fears of an Iranian supply cut. Government figures show that growth in demand for crude oil has slowed in the U.S. from a year earlier, although some oil traders are betting a strengthening economy will eventually boost consumption.

"Four dollar (per gallon) gas, that's not going to really shut down the economy," Wren said. "$5, $6 gas, that's a different story."

The average U.S. price of a gallon of gasoline has jumped 18 cents the past two weeks, with a gallon of regular at $3.69, according to the Lundberg Survey of fuel prices released Sunday.

Overseas markets fell slightly because of worries about high oil prices. Stocks fell 0.3% in Britain, 0.2% in Germany and 0.7% in France.

The European debt crisis is also still a lingering concern. Talks in Mexico at a meeting of the G-20 nations' finance ministers and central bank heads pointed to the need for the European Union to add billions in funds designed to stabilize the situation and calm markets.

Earlier in Asia, Japan's Nikkei 225 index ended down 0.1 percent at 9,633.9, giving up gains posted earlier in the day. Hong Kong's Hang Seng fell 0.8% to 21,217.86 and South Korea's Kospi lost 1.4% to 1,991.16.

Other commodities rose, including a 1.2% rise in wheat prices in Chicago. Soybeans topped $13 a bushel for the first time in five months. Global soybean supplies are tight, and hot, dry weather has damaged crops in Brazil and Argentina.

Among U.S. stocks making moves: