[1:20 PM New York City, New York – Market indexes on Wall Street rebounded from the fall of 1% and the U.S. third-quarter economic growth was revised higher to 2.1% from the first-estimate of 1.5%. European markets dropped more than 1% after tensions rose between Russia and Turkey.
Stocks struggled in New York trading after the preliminary estimate of economic growth was revised higher in the third-quarter and the geopolitical tensions rose in the Middle East and Europe.
In the revised estimate, the adjusted economic growth in real terms increased at 2.1% annual rate in the third-quarter and the real growth rate in the second-quarter was revised to 3.9%, Department of Commerce said.
The real growth rate eased but was ahead of preliminary estimate of 1.5% on the higher-than-expected previously estimated inventory buildup.
Separately, a private survey conducted showed home prices in September rose at the fastest pace in 13 years.
The controversial Standard & Poor’s/Case-Shiller 20-city home price index increased 5.5% from a year ago month, the fastest monthly increase since August 2014. On a monthly basis, prices rose 0.2% from August.
On Wall Street, Tollbooth Strategy Index slipped 42.17 or 0.4% to 10,987.02.
S&P 500 index slid 0.81 to 2,085.78 and the Nasdaq Composite Index fell 9.04 or 0.2% to 5,093.44.
Crude oil in New York jumped $1.19 to $42.94 a barrel and gold gained $7.06 to $1,076.24 an ounce.
Dollar Tree, Inc
) jumped 4.8% or $3.34 to $72.89 after the deep discount stores operator reported net sales in the third-quarter ending in October surged 136% from a year ago to $4.95 billion.
Same-store sales in the quarter jumped 5.9%.
Net income in the quarter plunged 8.2% to $81.9 million or 35 cents per diluted share compared to $89.2 million or 38 cents per share from the same quarter last year.
The retailer forecasted net sales for the fourth-quarter between $5.32 billion and $5.42 billion.
For the year, the retailer estimated net sales in the range of $15.45 billion to $15.55 billion and net income between $213.2 million to $242.2 million and diluted earnings per share in the range of $2.32 to $2.51.
Tiffany & Co
) rose 21 cents to $76.78 after the jewelry and watch retailer stated net sales in the third-quarter ending in October slipped 2.2% from a year ago to $938.2 million.
Net income in the quarter surged 137.6% to $91 million or 70 cents per diluted share compared to $38.3 million or 29 cents per share from the same quarter last year.
Tech Data Corp
) tumbled 11.6% or $8.78 to $67.95 after the technology products distributor net sales in the third-quarter ending in October declined 4.4% from a year ago to $6.43 billion.
Net income in the quarter rose 0.5% to $41.9 million or $1.18 per diluted share compared to $41.7 million or $1.07 per share from the same quarter last year.
European markets lost ground on Tuesday amid geopolitical turmoil, another hit on tourism stocks in the aftermath of terrorist attacks, and disappointing company reports.
The political environment in Europe became even more complicated after Turkey shot down a Russian fighter jet near the Syrian border.
While it is still unclear whether the plane was in the airspace controlled by Turkey or Syria, Russian president Vladimir Putin warned Turkey that there would serious consequences.
In addition, Washington issued a global travel warning to the U.S. citizens on the heightened terrorist threats.
""Current information suggests that terrorist groups continue to plan terrorist attacks in multiple regions,"" the State Department warned on its website and cited recent attacks in Denmark, France, Mali, Nigeria and Turkey.
In London trading, FTSE 100 index dropped 73.22 or 1.2% to 6,232.43 and in Frankfurt the DAX index slumped 162.45 or 1.5% to 10,927.31.
In Paris, CAC 40 index declined 98.72 or 2% to 4,790.23.
Mitchells & Butlers Plc
rose 0.2% to 348.70 pence after the U.K.-based operator of restaurants, pubs and bars, reported total revenues in the year ending in September jumped 6.6% from a year ago to £2.1 billion.
Net profit in the period surged 10.7% from a year ago to £103 million compared to £93 million and diluted earnings per share advanced to 24.9 pence from 22.5 pence.
Rolls-Royce Holding Plc
gained 0.7% to 573 pence after the U.K.-based defense contractor announced plans for major restructuring with the aim of annual savings of up to £200 million from 2017.
Zodiac Aerospace SA
was among the leading losers, down 6.8% to €22.75, after the French aerospace company reported that core annual earnings declined 44.6% due to production delays at the aircraft seats division.
Current operating income declined 40% to €549 million compared to previous fiscal year.
Markets in Tokyo edged higher after the volatile trading on dip-buying and profit-taking due to yen''s firmness against US dollar.
The gainers comprised stocks in pharmaceutical, retailer and marine transporters while losers were insurance, air transportation, utility provider and banks.
In corporate news, Sharp stock surged 14% after the Kyodo News said the government fund may invest in the company, if it’s main creditors Mizuho and Bank of Tokyo-Mitsubishi UFJ to waive their debts.
Nitto Denko jumped after said its drug for the treatment of liver fibrosis was granted on fast track designation by the U.S. Food and Drug Administration.
The Nikkei 225 Stock Average rose 45.08 or 0.2% to 19,924.89 and the broader Topix index edged up 2.76 to 1,605.94.
The yen weakened to 122.73 against a dollar.
surged 13.6% to 150 yen after the Kyodo News said if banks agreed to write off an unspecified amount of electric and electronic equipment maker, the government fund the Innovation Network Corporation agreed to invest in the struggling company.
Stocks in Mumbai trading lacked direction and foreign investors continued to trim portfolio holdings in India.
Foreign investors lowered net holdings by ₹35.37 crore on Monday, according to the latest data from two largest exchanges in Mumbai.
Rupee gained 10 paisa to 66.37 against one U.S. dollar.
The Sensex Index fell 43.60 to close at 25,775.74. The CNX Nifty decreased 17.65 to 7,831.60.
Tomorrow Markets in India are scheduled to close and observe Gurunanak Jayanti.