US Stocks fall after disappointing after consumer and housing data

The US stock market finished choppy session lower on Tuesday, 25 May 2021, after disappointing data about consumer confidence reading for May and new home sales soured sentiment and overshadowed dovish reassurances from several Federal Reserve officials.

At the close of trade, the Dow Jones Industrial Average index declined 81.52 points, or 0.24%, to 34,312. The S&P 500 index decreased 8.92 points, or 0.21%, at 4,188. The tech-heavy Nasdaq Composite Index dropped 4 points, or 0.03%, to 13,657.

Total 6 out of 11 S&P 500 sectors closed down, with energy (down 2.04%), utilities (down1.18%), financials (down 0.96%), and materials (down 0.88%) sectors being notable losers, while consumer discretionary (up 1.02%) and real estate (up 1.06%) sectors were notable gainers.

 

Federal Reserve officials continued to downplay rising price pressures, and reiterated that the central bank can take steps to cool a jump in inflation, if it occurs, without derailing the economic rebound coming out of the coronavirus pandemic.

ECONOMIC NEWS: US New Home Sales Fall Substantially In April-US new home sales slumped by 5.9% to an annual rate of 863,000 in April after jumping by 7.4% to a significantly downwardly revised rate of 917,000 in March, according to a report released by the Commerce Department on Tuesday. Despite the steep monthly drop, new home sales in April were still up by 48.3% compared to 582,000 in the same month a year ago.

US Consumers Optimism About Short-Term Outlook Wanes, Notes Conference Board-US consumer confidence index edged down to 117.2 in May after climbing to a revised 117.5 in April, a report released by the Conference Board on Tuesday showed. While the%age of consumers claiming business conditions are "good" fell to 18.7% from 19.4%, the proportion claiming conditions are "bad" also slid to 21.8% from 24.5%. Consumers' assessment of the labor market also improved, as those saying jobs are "plentiful" spiked to 46.8% from 36.3% and those claiming jobs are "hard to get" dipped to 12.2% from 14.7%. Meanwhile, the Conference Board said the expectations index dropped to 99.1 in May from 107.9 in April, as consumers' optimism about the short-term outlook waned.

Among Indian ADR, Tata Motors fell 0.7% to $21.37, ICICI Bank fell 0.62% to $17.67, Vedanta fell 1.97% to $14.97, WNS Holdings fell 0.53% to $74.46, Wipro fell 0.39% to $7.61, and HDFC Bank fell 3.32% to $73.01. Dr Reddys Labs was up 0.22% to $72.75 and INFOSYS added 0.32% to $18.73

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