Stocks End January With Best Gain In Years

A disappointing round of economic data weighed on US stocks Tuesday, but major indexes still posted the largest January gains in 15 years.

The Dow Jones Industrial Average declined 20.81 points, or 0.2 percent, to 12,632.91, punctuating month's end with its first four-session losing streak since November.

Nonetheless, the Dow's 3.4-percent rise in January was the biggest since 1997, and the Dow's 415 point gain in January was the most on record.

The Standard & Poor's 500-stock index edged lower by 0.6 points, or 0.1 percent to 1,312.41, and the Nasdaq Composite rose 1.9 points, or 0.1 percent, to 2,813.84. The S&P 500's 4.4-percent rise was its biggest in January since 1997. As with the Dow, the S&P 500's 55-point gain in January was the biggest on record.

The Dow climbed as much as 66 points early Tuesday before a reading on US consumer confidence in January sent stocks lower. The abrupt swing into negative territory came after the Conference Board's index of consumer confidence retreated to 61.1 this month -- well shy of the 68.0 reading expected by economists surveyed by Dow Jones Newswires. A reading that showed slower economic growth in the Chicago area last month didn't help.

The weaker-than-expected data offset early investor enthusiasm for a European Union pact to move 25 of 27 member governments closer to fiscal union and a permanent bailout fund for the 17-nation eurozone.

Investors once again digested quarterly earnings reports from major corporations. Exxon Mobil fell 2.1 percent, leading the Dow lower, after reporting its fourth-quarter earnings edged up 1.6 percent, in line with estimates. Still, margins declined in the fourth quarter because of rising oil prices and tepid fuel demand.

Pfizer fell 0.8 percent after the biopharmaceutical company reported fourth-quarter earnings and revenue that topped expectations, but it lowered its 2012 earnings outlook slightly to reflect unfavorable changes in foreign-exchange rates.

In corporate news, RadioShack plunged 30 percent after the consumer-electronics retailer reported disappointing preliminary fourth-quarter earnings and a drop in gross margins, citing significant declines in its Sprint business. The company also said it decided to suspend share repurchases "for the near term."