There are the events that are likely to affect trading on Tuesday.
We will get a look at home prices for April from S&P CoreLogic Case-Shiller. There is no estimate for the non-seasonally adjusted 20 city index, but economists surveyed by Refinitiv expect the seasonally adjusted index to rise 2.0% month-over-month. For the year, home price growth as measured by the 20 city index is projected to fall to 21.0% from a record 21.2% rise in March.
The Consumer Confidential consumer confidence index will be released on June 10 a.m. It is expected to drop 6 points, the second straight month's decline, to 100.4, the lowest since February 2021. Confidence is down sharply from the post-pandemic high of 128.9 last June on inflation concerns.
SEAT: Spirit Airlines shares lost $1.95, or 8%, to $22.57 after Institutional Shareholder Services recommended that the airline's investors vote for a proposed merger with Frontier Airlines. Frontier on Friday sweetened its offer for Spirit, which received several offers from JetBlue Airways. Spirit's shareholders are expected to vote on the offers at a special meeting on Thursday.
STOCK MARKETS: The Dow Jones Industrial Average, which entered a correction on March 7, finished Monday s losing session about 14.5% below its January 4 record high. The S&P 500, which fell into a bear market on June 13 for the first time since early 2020, is now more than 18.5% from its record close on January 3. The Nasdaq, which has been in a bear market since March 7, finished more than 28% below its peak on Nov. 19. The Russell 2000, which entered a bear market on January 27, is about 27.5% less than its high on Nov. 8, 2021.
INVESTORS REASSESS: Weaker than expected U.S. economic data has caused investors to reassess their expectations for a blistering pace of monetary policy tightening from the Federal ReserveFederal Reserve. The S&P 500 fell 20%, or a 20% drop from a recent peak, due to the Fed's plans to raise rates and tame inflation. Recent reports have indicated that the U.S. economy and possibly inflation is beginning to cool off. The University of Michigan revised its June reading of inflation expectations over the next five to 10 years to 3.1% from 3.3%.