U.S. equities lose their grip on strong gains, leading to yet another big sell-off in the markets. Jeanne Yurman reports.
U.S. equities were unable to hold onto sharp gains in Tuesday's session, closing out the day with rough sell-off. For much of the day stocks had rebounded from Black Monday's carnage after China outlined measures to boost its economy. But late in the day all three major stock gauges plunged amid ongoing fears that the number two economy is weakening Eric Wiegand of U.S. Bank says, Monday's sell-off had paved the way for early buying. (SOUNDBITE) ERIC WIEGAND, SENIOR PORTFOLIO MANAGER, PRIVATE CLIENT RESERVE, U.S. BANK (ENGLISH) SAYING: "For U.S. investors, we find this is creating opportunities. We still believe that, as far as domestic equities are concerned, that there's a great deal of attractiveness to shares. As of last night's close, we were trading at 16 times our calendar estimate for this year, so valuations are certainly more compelling." Consumer confidence surged to a seven-month high this month. Americans feeling slightly more bullish about the labor market ahead. There was mixed data on housing. New home sales rebounded in July according to the Commerce Department. While a separate report showed home prices rising faster in June from a year ago but remained flat from the prior month. And durable goods - things lasting a year or more - rose nearly three and a half percent in June. Luxury homebuilder Toll Brothers saw its shares dip after reporting a slide in profits in its most recent quarter. However, new order rose. And Best Buy was one of the biggest gainers. Shares surged on a surprise increase in sales for the second quarter. In Europe, it was a different story form the U.S., major indices posting their best one-day gain since 2011.