Dow and S&P end slightly lower on mixed signals

NEW YORK - Concerns over weaker global economic growth appeared to outweigh a pair of strong reports on the U.S. economy Tuesday, nudging stocks to a tiny loss.

Crude oil prices sank 3 percent, pulling down stocks of oil producers. Small companies, which have fewer ties to the world economy, made gains. Meanwhile, the dollar reached a one-year high against the euro as short-term interest rates edged up.

The S&P 500 index slipped 1.09 points, less than 0.05 percent, to 2,002.28. The Dow Jones industrial average fell 30.89 points, or 0.18 percent, to 17,067.56.

Market gauges that give greater weight to smaller companies fared better. The Nasdaq rose 17.92 points, or 0.39 percent, to 4,598.19.

Two reports out Tuesday offered encouraging signs of U.S. economic growth. The Institute for Supply Management, a trade group, said its gauge of manufacturing reached 59 in August, the highest level since March 2011, buoyed by orders for goods and increased production. Separately, the Commerce Department said that construction spending surged 1.8 percent in July, the biggest increase in more than two years.

"It's clear we have a very solid economic expansion, but the stock market isn't buzzing much at all," said Anastasia Amoroso, Global Market Strategist at J.P. Morgan Funds.

The euro continued its summer slide, hitting $1.313 against the U.S. currency. Recent economic reports have shown the eurozone's economy slowing to a crawl, and that has weighed on the euro.

The price of oil slumped, pulling down shares of oil and gas companies. Benchmark U.S. crude dropped $3.08 to close at $92.88 a barrel, its lowest price since January. Brent crude, a benchmark for international oil used by many U.S. refineries, fell $2.45 to end at $100.34. That was Brent's lowest closing price since May 2013.

News that Norwegian Cruise Line agreed to buy Prestige Cruises International for $3 billion sent Norwegian's stock up 11 percent. Analysts said the deal should help Norwegian compete with larger rivals Carnival Corp. and Royal Caribbean Cruises. Norwegian Cruise Line jumped $3.68 to $36.99.

Exelixis lost more than half its value after news that the drug developer's potential treatment for prostate cancer fell short in late-stage research. The company's stock plunged $2.29, or 55 percent, to $1.85.

U.S. government bond prices dropped, lifting long-term interest rates. The yield on the 10-year note rose to 2.41 percent, up from 2.35 percent late Friday.

In metals trading, gold fell $22.40, or 1.7 percent, to $1,265 an ounce. Silver slipped 34 cents, also 1.7 percent, to $19.152 an ounce. Copper was flat at $3.155 a pound.