Stocks Struggled at Open, US Productivity Up

U.S. stocks struggled for Momentum at open on Tuesday after the news that US productivity was up 3.1 percent in third quarter. The Dow Jones Industrial Average lately fell 19.92 points, or 0.10%, to 19,196.32. The S&P 500 was off 1.41 points, or 0.06%, to 2,203.30. The Nasdaq Composite gained 5.91 points, or 0.11%, to 5,314.80.

The productivity of American workers rose in the July-September quarter at the fastest pace in two years while labor costs slowed after a big jump in the spring. Productivity increased in the third quarter at a 3.1 percent rate, the Labor Department reported Tuesday.

The U.S. trade deficit recorded its biggest increase in more than 1-1/2 years in October as exports of soybeans and other goods dropped, suggesting that trade would be a drag on growth in the fourth quarter. The Commerce Department said on Tuesday the trade gap widened 17.8 percent to $42.6 billion.

Oil prices slipped off more than one-year highs Tuesday, as traders took profits after the sharp rally that followed last week’s decision by the Organization of the Petroleum Exporting Countries to cut production. Brent crude fell 37 cents, or 0.7%, to $54.56 a barrel. West Texas Intermediate futures were trading down 61 cents, or 1.2%, to $51.20 a barrel.

Toll Brothers, Inc. (TOL) announced results for earnings, revenues, contracts, and backlog for its fourth quarter and fiscal year ended October 31, 2016. FY 2016’s fourth-quarter net income was $114.4 million, or $0.67 per share diluted, compared to $147.2 million, or $0.80 per share diluted, in FY 2015’s fourth quarter. In FY 2016, net income was $382.1 million, or $2.18 per share diluted, compared to FY 2015’s net income of $363.2 million, or $1.97 per share diluted.