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Stocks ended mixed Tuesday as energy stocks rose along with oil prices. But consumer-discretionary and tech stocks declined.
Stocks had opened higher after upbeat housing and earnings reports and as the dollar retreated, then fell after a disappointing confidence report.
The Dow Jones Industrial Average managed to pull off a gain, advancing 14.21, or 0.1 percent, to close at 9,882.17. But the S&P 500 and Nasdaq declined, with the Nasdaq falling more than 1 percent as investors booked profits in the tech sector.
Volatility is also returning to the market: The CBOE volatility index, widely considered the best gauge of fear in the market, ticked higher to near 25.
The stock market has become overheated since rebounding off its March lows and is due for a correction, said David Rosenberg of Gluskin Sheff. Rosenberg used to be the chief economist at Merrill Lynch.
The market "is overvalued by at least 20 percent," Rosenberg said on CNBC this morning. "But it comes down to what your view in corporate earnings (is) going to be. By the time you're up 60 percent from any egregiously oversold low, you've already got the earnings recovery."
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