May 22, 2012-Markets Trade Flat as Momentum Declines Near Close

After seeing a positive bias throughout much of the session, stocks showed a notable move to the downside in the latter part of the trading day on Tuesday. Buying interest reemerged in the final minutes of trading, however, and the markets ended the day roughly flat. While the Nasdaq remained stuck in the red, the Dow and the S&P 500 closed nearly unchanged. The Nasdaq dipped 8.13 points or 0.3 percent to 2,839.08, while the Dow edged down 1.67 points or less than a tenth of a percent to 12,502.81 and the S&P 500 crept up 0.64 points or 0.1 percent to 1,316.63. The moderate strength seen for most of the day came as traders reacted positively to a report from the National Association of Realtors showing a rebound in existing home sales in the month of April. NAR said existing home sales rose 3.4 percent to an annual rate of 4.62 million in April from a downwardly revised 4.47 million in March. While sales came in below economist estimates, the report also showed the second consecutive month of annual home price growth Lawrence Yun, NAR chief economist, "This is the first time we've had back-to-back price increases from a year earlier since June and July of 2010." Bargain hunting also contributed to the upward move, although buying interest remained relatively subdued amid news that Fitch Ratings lowered Japan's credit rating.