US stocks mixed as Sears' shares skid

WASHINGTON: US stocks were mixed on Tuesday as strong consumer
confidence figures were offset by a drop in Sears' shares after it
announced sweeping store closures, citing bad holiday sales.

After a strong finish last week, the Dow Jones Industrial Average was down 2.65 points (0.02 percent) at 12,291.35.

The
broader SandP 500 gained 0.10 (0.01 percent) to 1,265.43, while the
Nasdaq Composite added 6.56 points (0.25 percent) to 2,625.20.

Shares opened lower, prodded by a report that home prices dropped again in October.

But the markets received a boost when the Conference Board reported a strong surge in consumer confidence this month.

The
board's monthly index surged to 64.5 from 55.2 in November, back to the
levels of early 2011 after the collective mood soured deeply in the
middle of the year.

"Looking ahead, consumers are more optimistic
that business conditions, employment prospects, and their financial
situations will continue to get better," said Conference Board official
Lynn Franco.

While pre-Christmas reports suggested consumer
spending during the gift-giving season was up modestly from 2010, on
Tuesday the Sears retail chain announced it would close between 100 and
120 stores in an effort to save costs after a plunge in holiday sales.

Sears shares were down 27.2 percent.

The
closure of Sears and Kmart branded stores are expected to garner US$140
million-US$170 million in revenue for the iconic but battling company.

Much
of the cash will come from the sale of merchandise. Additional cash is
expected to come from the sale or rental of properties.

The announcement came as the Illinois-based company reported its sales in the quarter to date had fallen 5.2 percent.

Elsewhere,
shares of Mead Johnson Nutrition rebounded 5.8 percent after it said
tests on its Infamil baby formula showed no sign of the harmful bacteria
that killed a newborn infant last weak.

Stores had pulled the
product from their shelves amid initial reports suggesting the bacteria
that killed him might have come from the formula, and Mead Johnson's
shares plunged. -- AFP