Stock Market News: Dow drops 490 points, consumer sentiment sinks, battle for Spirit latest

Consumer/Recession Image

Inflation is giving U.S. consumers more to worry about. The Consumer Confidence Index fell to a reading of 95.2 - the lowest since February of 2021, as reported by the Confernence Board.

"Consumer confidence fell for a second consecutive month in June," said Lynn Franco, Senior Director of Economic Indicators at The Conference Board. "While the Present Situation Index was relatively unchanged, the Expectations Index continued its recent downward trajectory—falling to its lowest point in nearly a decade. Consumers' grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices. Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022 as well as growing risk of recession by yearend."

Nick Loris, C3 Solutions vice president of public policy, assesses supply chain disruptions and oil producers reaching capacity ahead of the Independence Day weekend.

A group of pro-abortion Amazon employees filed a public letter to the company Tuesday in which they demanded the online retailer cease any and all business in pro-life states, according to reports. 

The Biden administration published its annual U.S. Energy and Employment Report (USEER) Tuesday, showing large fossil fuel industry job losses.

The Department of Energy (DOE) report found that the fuels technology sector experienced job losses totaling 29,271 jobs in 2021, a 3.1% year-over-year decline, with the majority coming in the fossil fuel industry. Onshore and offshore petroleum companies shed 31,593 jobs, a 6.4% decline, the coal industry lost 7,125 jobs, down 11.8% year-over-year, and fossil fuel extraction jobs declined by 12%.

SitusAMC managing director and former Fannie Mae exec Tim Rood warns of latency in mortgage data between May and June.

Home Sale Signage

The Case-Shiller Home Price Index for April rose by a record 21.2% annually. However, on a month-over-month basis the 20-city indices (seasonally and non-seasonally adjusted) rose at a slower pace in April than in March up 1.8% and 2.3%, respectively.

Wall Street futures

U.S. equity futures are higher on Tuesday, looking to bounce back from the previous session's losses.

Meanwhile, oil prices climbed, with West Texas Intermediate crude futures trading at around $111.40 a barrel while Brent crude futures traded at around $117.30 per barrel.

Cryptocurrency was trading higher across the board early Tuesday morning with Bitcoin, Ethereum and Dogecoin all showing gains.

Cryptocurrency was trading higher across the board early Tuesday morning with Bitcoin, Ethereum and Dogecoin all showing gains.

At approximately 4:45 a.m., Bitcoin was trading at approximately $21,010 (+ 1.31%), up about $270. For the week, Bitcoin was higher by + 0.38%. For the month, Bitcoin was trading down more than 27%.

Ethereum was trading at more than $1,220, up 2.25%, or about $27. For the week, Ethereum was trading higher by +5.14%. For the month, the cryptocurrency was trading down by more than 30%.

Dogecoin was trading at $0.07263, up 0.65%, or $0.0057. For the week, Dogecoin was trading higher by about 19.5%. For the month, the cryptocurrency was trading down by more than 11%.

The price of a gallon of regular gasoline decreased overnight with the price Tuesday dropping to $4.881 after Monday’s $4.897, according to AAA. (Courtesy gasprices.aaa.com)

The price of a gallon of regular gasoline decreased overnight with the price Tuesday dropping to $4.881 after Monday’s $4.897, according to AAA. Sunday’s national average price per gallon was $4.90. 

Gas prices have continued to drop for the past 12 days. 

Last week, the price of that same gallon of gasoline was $4.968. A month ago, the price of gasoline was $4.601. Last year, a gallon of gasoline cost $3.099.

Diesel prices also fell, dropping to $5.787, down from $5.794 on Monday. 

A week ago, a gallon of diesel sold for $5.812. A month ago, that same gallon of diesel sold for $5.528 a gallon. A year ago, diesel sold for $3.24, AAA reported.

U.S. stocks were edging higher early Tuesday morning after slipping Monday and losing some momentum after rallying last week on easing expectations for the path of the Federal Reserve's interest-rate increases.

U.S. stocks were edging higher early Tuesday morning after slipping Monday and losing some momentum after rallying last week on easing expectations for the path of the Federal Reserve's interest-rate increases. 

The S&P 500 lost early gains and closed down 11.63 points, or 0.3%, at 3900.11. The Dow Jones Industrial Average lost 62.42 points, or 0.2%, to 31438.26, while the technology-focused Nasdaq Composite Index retreated 83.07 points, or 0.7%, to 11524.55. 

Traders described Monday as a quiet day, with low volumes and investors in a holding pattern, with few moving around money. Weaker-than-expected U.S. economic data have caused investors to reassess their expectations for a blistering pace of monetary-policy tightening from the Federal Reserve. 

The Fed's plans to raise rates and tame inflation have sparked volatility in global markets this year and sent the S&P 500 into a bear market, or a 20% drop from a recent peak, earlier this month. 

But recent reports have indicated that the U.S. economy -- and potentially inflation -- is beginning to cool off. The latest evidence came Friday as the University of Michigan revised lower its June reading of inflation expectations over the next five to 10 years -- to 3.1% from 3.3%. 

U.S. consumer confidence data is also on the agenda in a week with few other major economic releases, leading some investors to adopt a “wait and see" stance, said Jun Rong Yeap of IG. 

Meanwhile, benchmarks rose in Tokyo, Seoul and Sydney but fell in Hong Kong and Shanghai. Tokyo's Nikkei 225 index gained 0.3% to 26,959.17 while the Kospi in Seoul also rose 0.3%, to 2,408.57.

Australia's S&P/ASX 200 climbed 0.6% to 6,743.20. 

Hong Kong's Hang Seng index lost 0.9% to 22,033.62 and the Shanghai Composite index was nearly unchanged at 3,379.94. Shares fell in Taiwan and India but rose in Bangkok. 

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Oil prices rallied for a third day on Tuesday.

Oil prices rallied for a third day on Tuesday as major producers Saudi Arabia and the United Arab Emirates looked unlikely to be able to boost output significantly, while political unrest in Libya and Ecuador added to supply concerns. 

U.S. West Texas Intermediate (WTI) crude futures rose $1.8, or 1.6%, to $111.36 a barrel by 0644 GMT, extending a 1.8% gain in the previous session. 

Brent crude futures climbed $1.9, or 1.7%, to $116.99, adding to a 1.7% rise in the previous session. 

The UAE and Saudi Arabia have been seen as the only two countries in the Organization of the Petroleum Exporting Countries (OPEC) with spare capacity available to make up for lost Russian supply and weak output from other member nations. 

"A seam of tight supply news bolstered the market. Two major producers, Saudi Arabia and the UAE, are said to be at, or very close to, near‑term capacity limits," Commonwealth Bank commodities analyst Tobin Gorey said in a note. 

UAE Energy Minister Suhail al-Mazrouei said on Monday UAE was producing near maximum capacity based on its quota of 3.168 million barrels per day (bpd) under the agreement with OPEC and its allies, together called OPEC+. 

Leaders of the G7 are discussing a potential price cap on Russian oil that would hit President Vladimir Putin's war chest while also lowering energy prices. 

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