Dow slumps as consumer confidence sinks to new pandemic low
Salesforce join blue-chip gauge, while ExxonMobil departs
' x='0' y='0' height='100%25' width='100%25' xlink%3Ahref='data%3Aimage/jpeg;base64,/9j/4AAQSkZJRgABAQAAAQABAAD/2wBDABALDA4MChAODQ4SERATGCgaGBYWGDEjJR0oOjM9PDkzODdASFxOQERXRTc4UG1RV19iZ2hnPk1xeXBkeFxlZ2P/2wBDARESEhgVGC8aGi9jQjhCY2NjY2NjY2NjY2NjY2NjY2NjY2NjY2NjY2NjY2NjY2NjY2NjY2NjY2NjY2NjY2NjY2P/wAARCAAFAAoDASIAAhEBAxEB/8QAFgABAQEAAAAAAAAAAAAAAAAAAAIF/8QAHhAAAQQBBQAAAAAAAAAAAAAAAQACAxEiBhITQVH/xAAVAQEBAAAAAAAAAAAAAAAAAAAEBf/EABkRAAMAAwAAAAAAAAAAAAAAAAABEQJxwf/aAAwDAQACEQMRAD8ArTs5EMDoht5RTrNlbj583Y9+oioSwJmlHvh//9k='%3E%3C/image%3E%3C/svg%3E)
U.S. stocks were under pressure Tuesday morning, failing to retain a grip on opening gains, after a report on consumer confidence highlighted a division in the perception of the economy on Main Street compared with Wall Street where equities have recovered to new record highs recently.
What are major benchmarks doing?
The Dow Jones Industrial Average DJIA fell 129 points, or 0.5%, to around 28,178, while S&P 500 index SPX ES00 lost 2 points, or 0.1%, at about 3,430, after briefly hitting an intraday all-time high at 3,439.16. The Nasdaq Composite Index COMP was down 18 points, or 0.2%, at roughly 11,361, at last check.
The Dow on Monday rose 378.13 points, or 1.4%, to finish at 28,308.46, leaving it 4.1% away from its record close set on Feb. 12. The S&P 500pushed further into uncharted territory, rising 34.12 points, or 1%, to close at a record 3,431.28. The Nasdaq Composite also ended at a record, rising 67.92 points, or 0.6% to 11,379.72.
What’s driving the market?
Investors were heartened overnight by news that U.S. and Chinese officials reaffirmed their commitment to a trade deal signed in January, but questions about the power of investors to help the economy mount a more substantial recovery from COVID-19 were thrown into some doubt after a reading on U.S. consumer confidence.
Consumer confidence fell in August to a new pandemic low after a fresh rash of coronavirus cases during the summer. The index of consumer confidence sank to 84.8 this month from a revised 91.7 in July, the Conference Board said Tuesday. Economists polled by MarketWatch had expected a reading of 93.0.
Analysts tied the early positive tone across global equity markets in part to remarks following a phone call between U.S. and Chinese officials over the status of the partial trade agreement despite rising tensions over Beijing’s treatment of Hong Kong and other issues.
China described the call as a “constructive” discussion between Vice Premier Liu He, the country’s top negotiator, and U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin. The U.S. said both sides “see progress and are committed to taking the steps necessary to ensure the success of the agreement.” The call came after plans for a discussion earlier this month were postponed.
“Given the exchanges between the two countries recently have been negative, any small bit of positivity is seen as a big step forward, even when it isn’t,” said David Madden, analyst at CMC Markets, in a note. “The Chinese government are still well behind on their commitments to purchase US goods, but to be fair, some of that is down to the pandemic.”
In other U.S. economic data, U.S. home prices continued to rise at a steady clip in June as many states began reopening businesses from shutdowns related to the coronavirus pandemic. The S&P CoreLogic Case-Shiller 20-city price index posted a 3.5% year-over-year gain in June, down from 3.% the previous month. On a monthly basis, the index increased 0.2% between May and June.
Sales of new single-family houses rose 14% between June and July to a seasonally-adjusted annual rate of 901,000, the U.S. Census Bureau reported Tuesday. The pace of sales was the highest since 2006. Compared with a year ago, new home sales were up 36%.
No comments:
Post a Comment