Mixed data unnerve US investors

New York - US stocks mostly fell on Tuesday as mixed reports on home prices and consumer confidence gave investors little incentive to step into the market.

A decision by IBM Corp. to double its stock-repurchase plan propped up the Dow Jones industrials, but the Nasdaq composite index slid after Baidu Inc., the Chinese internet search company, warned its revenue could take a hit as it switches its advertising system. Two stocks fell for every one that rose.

Bond prices rose after strong demand at a government debt auction, signaling that investors are still seeking safety.

Stocks rose at the start of trading following a report that home prices in 20 major metropolitan markets increased for the third straight month in August. The Standard & Poor's/Case-Shiller home price index gained 1 percent in August from July.

However, the higher home prices weren't enough to offset worries that consumers might not be in a mood to spend this holiday season. The Conference Board said its Consumer Confidence Index fell unexpectedly to 47.7 in October, its second-lowest reading since May. Analysts predicted a figure of 53.1.

Worries about consumers have been around for a while, but they took some of the sheen off corporate profit reports for the July-September quarter, which have been coming in ahead of expectations.

"When I look at the consumer, I think that is the next big test," said Dave Hinnenkamp, chief executive KDV Wealth Management in Minneapolis. "We've passed a big test on the earnings front."

The Dow rose 14.21, or 0.1%, to 9 882.17. The broader Standard & Poor's 500 index fell 3.54, or 0.3%, to 1 063.41, while Nasdaq fell 25.76, or 1.2%, to 2 116.09.

- AP