NEW YORK (MarketWatch) -- U.S. stocks tumbled Tuesday after a measure of consumer confidence fell by much more than expected in February, raising concerns about the outlook for consumer spending.
The declines piled on quickly after the Conference Board, a private research group, said its index of consumer confidence plunged more than 10 points this month to 46.0. Economists surveyed by MarketWatch had been looking for a slight drop, to 55.5 points from January's previously reported level of 55.9.
The present situation index, a gauge of consumers' assessment of current economic conditions fell to 19.4, its lowest point in 27 years. See full story on confidence.
Investors said the plunge was unexpected and did not portend well for retailers and other businesses that rely on consumer spending.
"There's disappointment that we just haven't been able to create jobs yet and that that may now be starting to undermine consumer buying attitudes," said Jeffrey Kleintop, chief market strategist at LPL Financial.
Especially with government programs run by the U.S. Federal Reserve and the Treasury slated to expire this spring, consumers may not be able to support the recovery unless the labor market improves, he said.
Many retailers who opened the session trading up after posting strong earnings, quickly slid into the red following the consumer confidence data.
in other news:
WASHINGTON (MarketWatch) -- Home prices in 20 major U.S. cities fell a not-seasonally adjusted 0.2% in December compared with November, according to the Case-Shiller home-price index released Tuesday by Standard & Poor's.
"The pace of deterioration has stabilized for now," said David Blitzer, chairman of the S&P index committee. "However, the rate of improvement seen during the summer of 2009 has not been sustained."
The declines piled on quickly after the Conference Board, a private research group, said its index of consumer confidence plunged more than 10 points this month to 46.0. Economists surveyed by MarketWatch had been looking for a slight drop, to 55.5 points from January's previously reported level of 55.9.
The present situation index, a gauge of consumers' assessment of current economic conditions fell to 19.4, its lowest point in 27 years. See full story on confidence.
Investors said the plunge was unexpected and did not portend well for retailers and other businesses that rely on consumer spending.
"There's disappointment that we just haven't been able to create jobs yet and that that may now be starting to undermine consumer buying attitudes," said Jeffrey Kleintop, chief market strategist at LPL Financial.
Especially with government programs run by the U.S. Federal Reserve and the Treasury slated to expire this spring, consumers may not be able to support the recovery unless the labor market improves, he said.
Many retailers who opened the session trading up after posting strong earnings, quickly slid into the red following the consumer confidence data.
in other news:
WASHINGTON (MarketWatch) -- Home prices in 20 major U.S. cities fell a not-seasonally adjusted 0.2% in December compared with November, according to the Case-Shiller home-price index released Tuesday by Standard & Poor's.
"The pace of deterioration has stabilized for now," said David Blitzer, chairman of the S&P index committee. "However, the rate of improvement seen during the summer of 2009 has not been sustained."
