Here are the key events taking place on Tuesday that could impact trading.
HOME SALES DATA RELEASE: At 9 a.m. ET Tuesday, we’ll get a look at home prices for April from S&P CoreLogic Case-Shiller. There is no estimate for the non-seasonally adjusted 20-city index, but economists surveyed by Refinitiv expect the seasonally adjusted index to rise 2.0% month-over-month. For the year, home-price growth as measured by the 20-city index is anticipated to slip to 21.0% from a record 21.2% rise in March.
CONSUMER CONFIDENCE INDEX: The Conference Board will release its consumer confidence index for June at 10 a.m. ET Tuesday. It is expected to tumble 6 points, the second straight monthly decline, to 100.4, the lowest since February 2021. Confidence is down sharply from a post-pandemic high of 128.9 last June on inflation concerns.
FRONTIER IN DRIVER’S SEAT: Spirit Airlines shares lost $1.95, or 8%, to $22.57 after proxy advisory firm Institutional Shareholder Services recommended that the airline's investors vote for a proposed merger with Frontier Airlines. Frontier on Friday sweetened its offer for Spirit, which has also received multiple offers from JetBlue Airways. Spirit's shareholders are slated to vote on the offers at a special meeting on Thursday.
STOCK MARKETS: The Dow Jones Industrial Average, which entered a correction on March 7, finished Monday’s losing session around 14.5% below its record closing high on Jan. 4. The S&P 500, which fell into a bear market on June 13 for the first time since early 2020, is more than 18.5% from its record close on Jan. 3. The Nasdaq, which has been in a bear market since March 7, finished more than 28% below its peak on Nov. 19. The small-cap Russell 2000, which officially entered a bear market on Jan. 27, is about 27.5% below its high on Nov. 8, 2021.
|I:DJI||DOW JONES AVERAGES||33963.84||-106.58||-0.31%|
|I:COMP||NASDAQ COMPOSITE INDEX||13211.806896||-12.18||-0.09%|
INVESTORS REASSESS: 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 to lower its June reading of inflation expectations over the next five to 10 years – to 3.1% from 3.3%.