Bad News Hits Traders Hard
Bob Pisani is off, this post was written by CNBC producer Danielle Kennedy
Markets are selling off in midmorning trading after being hit with disappointing economic data.
The S&P/Case Shiller indexindicated U.S. home prices continue to tumble in April, but are declining at a smaller pace for the third month in a row. Out of 20 major metro areas, 17 are posting drops of more than 10% from a year ago. Retreating consumer confidenceis also weighing on the markets, sending all sectors into the red. The Conference Board reporting its index of confidence fell to 49.3 in June, versus a revised 54.8 in May. Economists were expecting a reading of 56.
Traders are keeping an eye out for window dressing as the quarter comes to a close. However, trading volume has been extremely light Monday and today, so far. This has led some traders to believe that if there was any action caused by fund managers dumping or buying up stocks in an attempt to “dress up” their portfolios, it was likely completed last week.
S&P Sectors leading into the final day of the second quarter:
- Financials Up 36%
- Information Tech Up 20%
- Industrials Up 19%
- Consumer Discretionary Up 18%
- Materials Up 17%
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