US Stocks End Worst August Since 2001, Dow Jones Gained 4.99 Points

NEW YORK, Aug. 31, 2010 (Xinhua) --

U.S. stocks ended a choppy session mixed on Tuesday, wrapping up the worst August performance since 2001 amid mounting concerns about the health of the economic recovery.

Stocks tumbled in late trading on Tuesday after minutes from Fed's policy-setting committee revealed that Fed officials had discussed further measures to stimulate the economy.

The Dow Jones industrial average and the Standard & Poor's 500 index managed to finish in green, while the Nasdaq composite index dipped about 0.3 percent. All three major indexes posted their first down August in five years and saw their worst August in 10 years.

The Dow gained 4.99 points, or 0.05 percent, to 10,014.72. The S&P 500 index edged up 0.41 point, or 0.04 percent, to 1,049.33 and the Nasdaq fell 5.94 points, or 0.28 percent, to 2,114.03.

Stocks gained in the morning after the Conference Board said its consumer confidence index rose to 53.5 in August from a revised 51 a month earlier.

"Expectations about future business and labor market conditions have brightened somewhat, but overall, consumers remain apprehensive about the future," said Lynn Franco, director of the Conference Board Consumer Research Center.

A separate report showed home prices picked up in major U.S. cities. The Case-Shiller home price index released by Standard & Poor's showed the prices of single-family homes in 20 cities rose a seasonally unadjusted 1.0 percent in June.

The reading was better than economist had expected, but many investors believed that it only reflected the lingering boost from homebuyer tax credits.

But fear returned to the market after the release of the minutes of the Fed's discussions from the Aug. 10 meeting. It was revealed that the central bank recognized that the economy could need further stimulus beyond the debt purchases. Those are intended to lower interest rates on a range of consumer loans.

The dollar and the Japanese yen strengthened after the minutes. In late New York trading, the euro fell to 1.2665 dollars from 1. 2671 dollars late Monday, and the British pound retreated to 1. 5335 dollars from 1.5468 dollars.

In other trading, the dollar fell to 84.07 Japanese yen from 84. 68 yen, fell to 1.0164 Swiss francs from 1.0262 francs, and rose to 1.0672 Canadian dollars from 1.0586 Canadian dollars on late Friday.

Oil prices tumbled nearly four percent to settle below 72 U.S. dollars on Tuesday as investors eye another increase in crude stockpiles.

The U.S. Energy Department is set to release the latest fuel inventory report on Wednesday, and the market expected the crude oil stocks to rise for a second week.

Total oil inventories are already at the highest since at least 1990, according to government data. Concerns about weak demand has send crude futures traded in New York falling for seven percent this month.

Light, sweet crude for October delivery fell 2.78 dollars, or 3. 7 percent, to settle at 71.92 dollars a barrel on the New York Mercantile Exchange.

Brent crude for October delivery fell 2.13 dollars to 74.47 dollars a barrel on the International Futures Exchange in London.

Editor: Mu Xuequan