US Market tumbles on consumer confidence data

The US shares declined for a second consecutive day on Tuesday, 28 June 2022, with the major averages all finishing notably lower, after report from the Conference Board showed U.S. consumer confidence deteriorated to its lowest level in over a year in June.

Negative sentiment may also have been generated with lingering concerns about a potential recession with aggressive rate hikes.

At the close of trade, the Dow Jones Industrial Average index declined 491.27 points, or 1.56%, to 30,946.99. The S&P500 index was down 78.56 points, or 2.01%, to 3,821.55. The tech-heavy Nasdaq Composite Index dropped 343.01 points, or 2.98%, to 11,181.54.

Total 10 of 11 major S&P sectors ended the session lower, with consumer discretionary (down 4%), information technology (down 3%), communication services (down 2.9%), and healthcare (down 1.7%) suffered largest percentage losses. Energy sector was the clear winners, gaining 2.7%, benefiting from rising crude prices.

Retail stocks moved sharply lower following the disappointing consumer confidence reading. Bath & Body Works lost 5.8%. Lowe's fell 5.2%, while Home Depot and Macy's each lost more than 4%.

Chip stocks saw big declines, with Nvidia down 5.3% and Advanced Micro Devices lower by 6.2%. Marvel fell 4.9%.

Gold stocks also saw considerable weakness amid a modest decrease by the price of the precious metal.

Semiconductor, biotechnology, networking and telecom stocks also showed notable moves to the downside, while energy stocks bucked the downtrend amid a surge by the price of crude oil.

Among individual stocks, Nike Inc slid 6.3% after forecasting lower than expected first-quarter revenue. Nike said it sees flat to slightly up revenue for its fiscal first-quarter versus the prior year, and low double-digit revenue for 2023 on a currency-neutral basis, as it continues to manage Covid disruption in Greater China.

Shares of Occidental Petroleum Corp advanced 3.1% after Warren Buffett's Berkshire Hathaway Inc raised its stake in the company.

ECONOMIC NEWS: The Conference Board said its consumer confidence index slid to 98.7 in June from a downwardly revised 103.2 in May. With the continued decrease, the consumer confidence index fell to its lowest level since hitting 95.2 in February of 2021. The Conference Board also said 12-month inflation expectations for its consumer confidence survey were at 8% for June, the highest level in data going back to August 1987.

Among Indian ADR, Tata Motors fell 0.5% to $26.24, ICICI Bank fell 2% to $17.74, HDFC Bank fell 3% to $55.16, Dr Reddy's Labs fell 0.65% to $55.29, and Wipro sank 2.4% to $5.32. INFOSYS dropped 1.6% to $18.46, WNS Holdings fell 1.4% to $74.11, and Azure Power Global declined 9% to $12.21.

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