Investing.com – U.S. stocks posted losses on Tuesday as official data revealed worse-than-expected consumer confidence and crude took another leg lower as hopes for a production cut fizzled.
The Dow 30 dropped 149 points or -0.90%, while the S&P 500 traded down 17 points or -0.87% and the tech-heavy NASDAQ Compositefell 43 points or -0.94% at 16:45GMT or11:45AM ET.
Wall Street began Tuesday’s session following Asian and European counterparts downward, but extended losses after consumer confidence plunged to a seven-month low in February, underlining concerns over the health of the economy.
In a report, the Conference Board, a market research group, said its index of consumer confidence fell to 92.2 this month from a reading of 97.8 in January, whose figure was revised from a previously reported 98.1. Analysts expected the index to fall to 97.0 in February.
Not all of the U.S. economic news was bad however, as existing home sales unexpectedly rose in January to a six-month high at a pace that was the second highest since 2007.
In other data with less market impact, the Richmond manufacturing index dropped to -4, when analysts had expected the figure to remain stable at 2. A negative reading indicates worsening business conditions in the Richmond area.
Finally, the S&P/Case Shiller housing price index rose by 5.7% in December, ticking in slightly below the expected 5.8% increase.
On the earnings front, the Dow component Home Depot (N:HD) posted solid gains at the beginning of the session after the world’s largest home improvement retailer blew through analyst estimates.
The general market doldrums however seemed to have affected the stock which rose by only 0.5% later in the session.
Also worth noting, Macy`s Inc (N:M)continued to register gains of 2.8% after the department store chain posted better-than-expected comparable sales and gave a full-year earnings-per-share guidance of $3.80 to $3.90 compared to the $3.83 per share consensus estimate.
Meanwhile, crude tumbled following bearish comments from Iran’s oil minister Bijan Zanganeh, who called last week’s output freeze deal between Saudi Arabia and Russia “ridiculous”.
Saudi oil minister Ali al-Naimi also suggested that the oil freeze is the beginning of the process to stabilize markets, but stated that a reduction in output would not help.
Al-Naimi stated that another meeting would be held in March, dashing any hopes for an immediate resolution.
Crude oil futures for April delivery on the New York Mercantile Exchange sank -$1.39, or -4.16%, to trade at $32.00 a barrel by 16:45GMT, or 11:45AM ET.
Brent oil traded down $1.22 or -3.55% to $33.47.