Wall Street ended a record quarter on a down note as all three major averages trended lower Tuesday. The economy saw a decline in consumer confidence in the month of June, which now stands at 49.3, down from its revised May level of 54.8. The decline can be contributed to mounting job losses which have taken a toll on personal job security. After being slightly positive, stocks turned negative on the news as consumer activity accounts for almost 2/3 of economic activity in the nation.

By the closing bell, the street seemed to be glad to usher out the 2nd quarter of the year, as the spring rally has stalled over the past weeks, and traders are looking for an excuse to either sell off or send the market to its next leg. The Dow Jones Industrial Average fell 82.38, or 1 %, to 8,447.00; the S&P 500 fell 7.90, or 0.9 %, to 919.33, and the Nasdaq slid 9.02, or 0.5 %, to 1,835.04.

The Dow Jones industrial average rose 11 % during the quarter, while the Standard & Poor’s 500 index surged 15.2 %; their first quarterly gains since the third quarter of 2007. The Dow also had its best quarter since 2003 and the S&P 500 its best since 1998.

Morning Outlook

Stocks were mixed in Asia overnight to ring n the new quarter. China’s Shanghai Composite index rose 1.7 % to 3,008.15, while South Korea’s Kospi advanced 1.6 % to 1,411.66. Japan’s Nikkei 225 index fell 18.51 points, or 0.2 %, to close at 9,939.93 after a weaker than expected business survey; the index had been up over 1% during trading.

An increase in business activity for the euro zone’s manufacturing sector rose for the fourth straight month, sending major indices higher. The FTSE 100 index of leading British shares was up 58.83 points, or 1.4 %, at 4,308.04 while Germany’s DAX rose 67.80 points, or 1.4 %, to 4,876.44. The CAC-40 in France was 55.36 points, or 1.8 %, higher at 3,195.80.

On Wall Street, stocks look to economic data to drive the market higher. Before a barrage of reports, futures signal a positive opening. Following the gains in Europe, Dow Jones industrial average futures are up 40, or 0.5 %, to 8,434. Standard & Poor’s 500 index futures are up 5.10, or 0.6 %, to 920.60, and Nasdaq 100 index futures are up 7.50, or 0.5 %, to 1,483.75.

Economic Calendar

Motor Vehicle Sales: Auto and truck sales show market conditions for auto makers and the slew of auto-related companies as well as manufacturers of other big ticket discretionary goods in the domestic market. The economic consensus is for 7 million units for the month of May, which would be greater than the April annualized rate of 6.9 million units. Sales on such big ticket items have really been hit hard in today’s environment. The potential lack of solvency from these large automakers is also having consumers think twice.

8:15 AM
ADP Employment Report: The new ADP national employment report can help improve the payroll forecast by providing information in advance of the employment report. By tracking the jobs data, investors can sense the degree of tightness in the labor market.

10:00 AM
The ISM Manufacturing Index: The Institute for Supply Management surveys more than 300 manufacturing firms on employment, production, new orders, supplier deliveries, and inventories. The index gives a great look at the state of manufacturing and the direction it is heading. The cyclical nature of manufacturing could signal further economic downturn, and also can send off serious inflationary pressures in the economy on a higher than expected number.

The consensus figure is 45 for the month of June, up from May’s reading of 42.8.

10:00 AM
Construction Spending: The report measures the value of new construction activity on residential, non-residential, and public projects, giving a great indication of the economy’s momentum. Why would you expand your operation if you think the near term outlook is bleak? The same can be said on the residential front. Public project spending puts money back into the hands of those providing the labor and thus has its own ripple effect throughout the economy.

The consensus is for a drop of 0.5% in May after advancing 0.8% in April.

10:00 AM
Pending Home Sales Index: A leading indicator of existing home sales for the month of February developed by The National Association of Realtors. This provides a gauge of not only the demand for housing, but general sentiment on the consumer front. People have to be feeling pretty comfortable and confident in their own financial position to buy a house and the ripple effect a housing purchase has throughout the economy.

10:35 AM
EIA Petroleum Status Report: The Energy Information Administration (EIA) provides weekly information on petroleum inventories in the U.S. Oil prices have ticked up as OPEC continues production cuts to meet its quota, despite continued stockpiles. Trading on the NYMEX has been primarily driven by the direction of equities and the level of optimism of a sooner rather than later economic recovery.