Stocks gave back earlier gains and turned negative on Tuesday as investors looked for direction in a market weighed down by inflation fears amid positive U.S. economic recovery sentiment. Declines in Big Tech all dropped from their earlier advances and pulled the market lower as they dropped into the red.
The S&P 500 dropped below 0.2%, pulled lower by Energy
Reopening names, however, provided some broader market support as the industry was boosted by United Airlines
Stocks settle lower on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
D.C. Attorney General files antitrust lawsuit against Amazon:
Washington D.C. Attorney General Karl Racine announced on Tuesday that he has filed an antitrust lawsuit against Amazon, alleging that the ecommerce giant illegally maintained monopoly power by using contract provisions to prevent third-party seller on its platform from offering their products for lower prices on other platforms.
An Amazon spokesperson told CNBC in a statement on Tuesday: "The D.C. Attorney General has it exactly backwards--sellers set their own prices for the products they offer in out store. Amazon takes pride in the fact that we offer low prices across the broadest selection, and like any store we reserve the right not to highlight offers to customers that are not priced competitively. The relfie the AG seeks would force Amazon to feature higher prices to customers, oddly going against core objective of antitrust laws."
Stocks turn negative in mid-day trading:
S&P 500 Index: -0.12% or -5.06 points to 4,191.99
Dow Jones Industrial Average: -0.09% or -30.62 points to 34,363.36
Nasdaq Composite Index: -0.05% or -7.50 points to 13,654.36
Consumer confidence declines in May:
Consumer confidence fell by a more-than-expected margin in May, as consumers began to worry about inflation, but still remained confident towards economic recovery as the U.S. vaccination effort continues.
The Conference Board's consumer confidence index declined to 117.2 in May from a downwardly revised 117.5 in April.
New home sales dropped in April:
U.S. new home sales declined at a less-than-expected rate in April over March, even as rising prices and tight inventory affects the overall market.
New home sales fell by 5.9% in April, giving back some of March's 7.4% increase, the Commerce Department reported on Tuesday. Consensus economists had expected a 7% drop for the month, according to Bloomberg.
April's decline brought new home sales to a seasonally adjusted annual rate of 863,000. Compared to a year ago, that level is more than 48% above the rate of 582,000 from April 2020.
Here's how the market started trading after open:
S&P 500 Index: +0.27% or +11.17 points to 4,208.22
Dow Jones Industrial Average: +0.18% or +63.58 points to 34,457.56
Nasdaq Composite Index: +0.44% or +63.89 points to 13,722.54
Home prices jumped in March:
U.S. home prices increased by a more-than-expected rate in March over the month and year prior, as tight inventory and rising demand for houses impacted affordability.
Standard & Poor's CoreLogic Case-Shiller national home price index rose 13.2% in March over last year, accelerating from a 12% year-on-year increase in February. This marked a tenth straight monthly increase, and the fastest rate of advances since December 2005.
"These data are consistent with the hypothesis that COVID has encouraged potential buyers to move from urban apartments to suburban homes. This demand may represent buyers who accelerated purchases that would have happened anyway over the next several years," said Craig Lazzara, managing director and global head of index investment strategy at S&P DJI, in a press release.