Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall Street stumbles as consumer pessimism stokes growth fears

Economy Jun 28, 2022 06:36PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., June 22, 2022. REUTERS/Brendan McDermid

By Stephen Culp

NEW YORK (Reuters) - Wall Street closed sharply lower in a broad sell-off on Tuesday as dire consumer confidence data dampened investor optimism and fueled worries over recession and the looming earnings season.

The S&P and the Nasdaq fell about 2% and 3% respectively, with Apple Inc (NASDAQ:AAPL), Microsoft Corp (NASDAQ:MSFT) and Amazon.com (NASDAQ:AMZN) weighing the heaviest. The blue-chip Dow shed about 1.6%.

"Markets were fine today until the consumer confidence number came out," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "It was weak and markets immediately began selling off."

With the end of the month and the second quarter two days away, the benchmark S&P 500 is on track for its biggest first-half percentage drop since 1970.

All three indexes are on course to notch two straight quarterly declines for the first time since 2015.

"At some point this aggressive selling is going to dissipate but it doesn't seem like it's going to be anytime soon," said Tim Ghriskey, senior portfolio strategist Ingalls & Snyder in New York.

Data released on Tuesday morning showed the Conference Board's consumer confidence index dropping to the lowest it has been since February 2021, with near-term expectations reaching its most pessimistic level in nearly a decade.

The growing gap between the Conference Board's "current situation" and "expectations" components have widened to levels that often precede recession:

Graphic: Consumer confidence - https://graphics.reuters.com/USA-STOCKS/gkvlgeqrgpb/consumerconf.png

The Dow Jones Industrial Average fell 491.27 points, or 1.56%, to 30,946.99, the S&P 500 lost 78.56 points, or 2.01%, to 3,821.55 and the Nasdaq Composite dropped 343.01 points, or 2.98%, to 11,181.54.

Ten of the 11 major sectors in the S&P 500 ended the session in negative territory, with consumer discretionary suffering the largest percentage loss. Energy was the sole gainer, benefiting from rising crude prices. [O/R]

With few market catalysts and market participants gearing up for the July Fourth holiday weekend, the day's sell-off cannot be blamed entirely on the Consumer Confidence report, said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management in Minneapolis, Minnesota.

"It’s hard to attribute (market volatility) to one economic data point with so much noise around portfolio rebalancing at quarter-end," Hainlin said.

"There’s not a lot of new information out there and yet you see this volatile stock environment," he said, adding that there will not be much new information until companies start earnings.

With several weeks to go until second-quarter reporting commences, 130 S&P 500 companies have pre-announced. Of those, 45 have been positive and 77 have been negative, resulting in a negative/positive ratio of 1.7 stronger than the first quarter but weaker than a year ago, according to Refinitiv data.

Nike Inc (NYSE:NKE) slid 7.0% following its lower than expected revenue forecast.

Shares of Occidental Petroleum Corp (NYSE:OXY) advanced 4.8% after Warren Buffett's Berkshire Hathaway (NYSE:BRKa) Inc raised its stake in the company.

Declining issues outnumbered advancing ones on the NYSE by a 2.28-to-1 ratio; on Nasdaq, a 2.70-to-1 ratio favored decliners.

The S&P 500 posted one new 52-week high and 29 new lows; the Nasdaq Composite recorded 29 new highs and 131 new lows.

Volume on U.S. exchanges was 11.54 billion shares, compared with the 12.99 billion average over the last 20 trading days.

Wall Street stumbles as consumer pessimism stokes growth fears
 

Related Articles

Wall Street steadies after U.S. jobs report sell-off
Wall Street steadies after U.S. jobs report sell-off By Reuters - Aug 08, 2022 7

By Lawrence Delevingne and Tom Wilson (Reuters) - U.S. and global stock markets gained ground on Monday, recovering from losses sparked by a strong U.S. jobs report last week that...

Corteva Tailwinds Converging - JPMorgan
Corteva Tailwinds Converging - JPMorgan By Investing.com - Aug 08, 2022

By Sam Boughedda Agricultural chemical and seed company Corteva's (NYSE:CTVA) shares were moved from Neutral to Overweight by a JPMorgan analyst on Monday. The analyst also boosted...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (28)
Shaik Raja
Shaik Raja Jun 28, 2022 9:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
today india how moves up or down
Kerry Ditto
Kerry Ditto Jun 28, 2022 8:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
consumer confidence levels are currently transitory. watch what they actually do. their activities are in pent up demand mode, unstoppable.
Arthur Daret
Arthur Daret Jun 28, 2022 3:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Biden market beatdown continues. Still think were close to bottoming.
john smith
john smith Jun 28, 2022 3:42PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
not even close
Ronald Warren
Ronald Warren Jun 28, 2022 3:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Tomorrow morning before the bell, GDP data and recession talk. The DOW will lose at least 1500 more points this week.
Atlantic Coast Money
Atlantic Coast Money Jun 28, 2022 3:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
GDP will send market up 6% on the NQ. Today was a severe bear trap for gamblers.
Ronald Warren
Ronald Warren Jun 28, 2022 3:40PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Atlantic Coast Money Not so sure. That 400 point run-up at the open positioned the big players with some sweet puts.
Mark Jannetty
Mark Jannetty Jun 28, 2022 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
if Democrats insist on this war on oil, a collapse is unavoidable. you don't build a park before the neighborhood. were are the new nuclear plants?
First Last
First Last Jun 28, 2022 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It's Putin who's insist on war.
Ronald Warren
Ronald Warren Jun 28, 2022 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
It takes years to get a nuclear plant approved and built. I think that liberals want to break the bank.
First Last
First Last Jun 28, 2022 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Ronald Warren    The Dem Party supported nuclear energy in its 2020 Party platform.  The GOP didn't in its platform.
Brad Albright
Brad Albright Jun 28, 2022 3:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Shhhh. No facts, please.
Dennis Wozny
Dennis Wozny Jun 28, 2022 3:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
LGB
Edward Smyth
Edward Smyth Jun 28, 2022 3:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
or kgb
Lionel Laurent
Lionel Laurent Jun 28, 2022 2:56PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Les escrocs de wallstreet et de la fed bravo biden le pire président avec Jimmy carter
Jack Nicholson
Jack Nicholson Jun 28, 2022 1:46PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
New Headline: The bears are roaming, tearing through garbage stock market.
Imre Zsombor Varga
Imre Zsombor Varga Jun 28, 2022 1:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
i love sp500 ,buy the deep $$$
me ish
me ish Jun 28, 2022 12:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
don't forget the mid terms are in less than six months - the powers that be will do what they have to do to boost the economy and markets, so expect a good second half - this is invariably what happens in the run up to mid terms and they have the skills in market manipulation to make it happen. For starters, there's going to be a large share buy back programme by many of the top US companies!!! the manipulation is starting now!!
nick cage
nick cage Jun 28, 2022 12:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Very possible. The US is more corrupt than Russia
First Last
First Last Jun 28, 2022 12:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nick cage   Even Russians (nor China) don't believe that!
First Last
First Last Jun 28, 2022 12:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
nick cage  Putin said: "I will not conceal that corruption, especially grassroots corruption, is excessive and, actually, endangers society as a whole."  Of course he downplayed the more important corruption at gov't levels.
dar dar
dar dar Jun 28, 2022 12:54PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
actually in my sick mind I think uber wealthy Republicans will do the best they can to tank the market that's what I'm betting on have a great day
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email