Updated with AIG annual meeting, and closing stock and commodity price changes.
Oil futures fell, and the major stock indices in New York shed up to 1% Tuesday. The end of the second quarter is here, with an unexpected drop in consumer confidence.
Dow Jones Industrial Average
closed down 82.38 points, or 1%, at 8447, while the
fell 7.94 points, or 0.9%, to 919.32. The
gave up 9.02 points, or 0.5%, to 1835.04.
But for the quarter, the Dow and S&P gained 11% and 15%, respectively, while the Nasdaq added 20%.
Financials and energy stocks were giving back gains from a day prior, with the KBW Bank Index and the Philadelphia Oil Service Sector Index falling 1.5% apiece. But losses were broad-based across sectors.
was the worst performer on the Dow, losing 4.9%.
Procter & Gamble
all closed more than 2% lower as well.
One stock bucking the trend,
, was better by 5% after the automaker said a decline in sales was slowing, and it boosted its
Stocks opened tentatively to the upside but reversed course after the Conference Board said its consumer confidence index fell unexpectedly to 49.3 in June, from 54.8 in May and vs. expectations for 55.3.
"People are still very worried about whether or not jobs will come out of this recovery because there's so much slack in the economy at the moment," says Marc Pado, U.S. market strategist for Cantor Fitzgerald. "People aren't working as much and manufacturing facilities are sitting idle, so there's a lot of room for expansion without hiring anybody -- this may be a jobless recovery for a while, and that's what's got people a bit negative."
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The major indices closed as much as 1% higher Monday as financier Bernard Madoff was given a 150-year prison sentence, and portfolio managers made adjustments for the end of the quarter, sometimes referred to as window-dressing.
The S&P Case Shiller Home Price Index for April showed that home prices in 20 metropolitan areas dipped 0.6% in April from March. Prices were still 18.1% lower than a year earlier, but the month-over-month decline was an improvement over a 2.2% drop the month prior.
Meanwhile, the Chicago purchasing managers index for June increased to 39.9 from 34.9 a month prior. That was slightly better than expected.
Those data, however, were offset by the decline in consumer confidence, the effects of which reached commodities. Crude oil futures fell $1.60 to $69.89 a barrel after surging more than $2 Monday. (The dollar, meanwhile, was slightly weaker vs. the yen and slightly stronger against the pound and euro.)
Iraq opened up a
for six of its oil and two of its gas fields to foreign companies on Tuesday for the first time in more than 30 years, hoping that it will contribute to postwar reconstruction.
In corporate news, Carlyle Group, Primus Financial and MBK Partners may
Nan Shan Life Insurance, the Taiwanese subsidiary of
American International Group
Separately, Tuesday was AIG's
. Executives of the insurance giant said there is an "excellent chance" it will be able to repay the government's massive loan and that AIG is actually "more stable than before," but shares fell 12.8%.
raised its offer for technology storage company
to $11 a share from $9.25 and said the new bid is the best offer it plans to make. Broadcom shares fell 0.5%, while Emulex gave up 10.1%.
has been ordered by a federal jury to pay $1.67 billion in a patent infringement suit over its rheumatoid arthritis drugs, according to Centocor, a unit of
Johnson & Johnson
. Abbott said in a statement, however, that it plans to appeal the decision. Abbott shares shed 1.6%, while Johnson & Johnson edged down just 0.3%.
Stocks overseas were mixed. In Europe, London's FTSE 100 was lower by 1%, while the Dax in Frankfurt fell 1.6%. In Asia, the Nikkei in Japan gained 1.8%, while the Hang Seng in Hong Kong closed 0.8% lower.
Longer-dated Treasuries were recently falling in price, rising in yield. The 10-year was losing 11/32 to yield 3.52%, while the 30-year was down 18/32, yielding 4.32%.