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Stocks drop following US earnings, economic data

written by Bella Palmer

A report showed that US consumer confidence hit lowest in nine months during April

US stocks dropped on Tuesday on recession concerns following weak earnings and soft economic data.

The S&P 500 tumbled 59.56 points, or 1.44 per cent, at 4,077.48.  The DJIA dropped 335.19 points, or 0.99 per cent, at 33,540.21. The Nasdaq Composite dipped 207.27 points, or 1.72 per cent, at 11,829.93.

United Parcel Service stock shed $19.56 to $176.29 after it cut its revenue forecast for the year.

First Republic stock lost 28 per cent after it reported a 40 per cent decline in deposits in Q1.

PepsiCo Inc. shares added $4.21 to $189.71 after it increased its profit forecast for the year.

General Motors shares finished 4 per cent lower after it warned that price gains seen in 2022 will not continue as the year proceeds.

A report showed that US consumer confidence hit lowest in nine months during April.

The US dollar jumped on Tuesday as Joe Biden confirmed his bid to run for re-election as US president in 2024. The euro shed 0.69 per cent at $1.0965. The Japanese yen gained 0.51 per cent against the US dollar at 133.57. The Sterling lost 0.65 per cent at $1.2401.

European shares stumbled on Tuesday amid weak earnings for the banking sector. The pan-European STOXX 600 index shed 0.4 per cent, while the European banking index slumped 2.2 per cent.

Britain’s FTSE 100 lost 0.3 per cent at 7,891.13. Germany’s DAX advanced less than 0.1 per cent at 15,872.13. France’s CAC 40 retreated 0.6 per cent at 7,531.61.

Spanish stocks also dropped, led by a decline in bank Santander. Spain's IBEX index dropped 1.2 per cent.

Asian stock markets closed mostly down. MSCI's broadest index of Asia-Pacific shares, outside Japan, finished 1.44 per cent lower.

Hong Kong’s Hang Seng index declined 1.7 per cent at 19,617.88. In China, Shanghai Composite slumped 0.3 per cent at 3,264.87. Japan’s Nikkei 225 gained 0.1 per cent at 28,620.07.

On Tuesday, New Zealand and Australian markets were closed for a holiday.


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