Stocks waver after upbeat economic data

NEW YORK (AP) — Stock prices wavered Tuesday as investors made last-minute portfolio adjustments as the end of the quarter approached.

The mood in the market was upbeat after a report that consumer confidence grew more than expected in March, although it's still well below historical levels that indicate a strong economy. A separate report showed home prices inched higher for the eighth consecutive month.

Analysts expect trading to be erratic the nex two days. At the end of a quarter, institutional investors typically engage in what's known as window dressing, or trades intended to boost returns on reports sent to shareholders. Many also refrain from big moves, and Tuesday's volume was also light as many traders took the day off for Passover or in advance of Easter.

The day's economic reports followed a recent trend in data that shows the economy is improving, albeit slowly. Investors have reacted positively to similar reports in recent weeks. The Dow Jones industrial average has risen in 18 of the past 22 days and is now at its highest level since September 2008.

The Conference Board said its consumer confidence index rose to 52.5 in March, from 46.4 last month. Economists polled by Thomson Reuters had forecast it would rise to 50.

While the reading would indicate improvement, it is far from signaling a healthy economy. A reading above 90 means the economy is on solid footing.

"We're starting to see consumers come back in an adequate manner," said Larry Rosenthal, president of Financial Planning Services in Manassas, Va. "Not strong, but adequate."

In late morning trading, the Dow fell 17.92, or 0.2 percent, to 10,877.94. The Standard & Poor's 500 index fell 3.40, or 0.3 percent, to 1,169.92, while the Nasdaq composite index fell 4.63, or 0.2 percent, to 2,399.73.