Before The Bell
U.S. stocks had a positive open to start the week, but trading became a bit mixed as the session wore on.
On the economic front, the National Association of Home Builders reported that its confidence index was up six points, to 78 for august, matching an all-time high set more than two decades ago. Sentiment readings among builders had dropped to a level of 30 back in April, in the wake of the widespread COVID-19 lockdowns. Elsewhere, the New York Fed reported that its Empire State business index was down 13.5 points in August, to a reading of 3.7, reflecting drops in new orders and shipments.
Meanwhile, Congress remained locked over the latest stimulus moves to help individuals and businesses impacted by the pandemic. Also, funding for the United States Post Office remains a hot-button issue, particularly as mail-in voting will likely play a large part in the fast-approaching elections. Notably, New Zealand announced that its own elections would be pushed back a month after a recent coronavirus outbreak in Auckland.
The Dow Jones Industrials ended the session down 86 points and the broader S&P 500 was up by nine points, just shy of its record high set back in February. Meanwhile, the tech-heavy NASDAQ ruled the day, closing up 110 points, or 1%, to a new record high. Performance among the major market sectors was also mixed, but mostly positive. The plus side was led by consumer cyclicals and basic materials, both rising 1.4%, while healthcare and technology issues gained a percentage point each. Meanwhile, in the minus column, financials and utilities lost about a quarter percent.
Elsewhere oil prices advanced, with light sweet crude up 2%, to about $42.80 a barrel. The move comes head of next week’s planned meeting between OPEC and its oil-producing allies. The commodity is up more than 5% over the past 30 days. However, it’s still off by about 22% versus where it was a year ago. Meanwhile, the European bourses had an up day. The U.K.’s FTSE 100 led the charge, rising 0.6%, while Germany’s DAX and France’s CAC-40 were both ahead modestly.
As we look to the new day, stocks in Asian markets closed mostly higher, while the European bourses are trading in similar fashion. On our shores, U.S. stock futures are suggesting the major indexes will open to the upside, while crude oil prices have edged lower.
Meanwhile, the U.S. Census Bureau reported that housing starts were up 22.6% in July, to a seasonally adjusted annual rate of 1.496 million. Building permits were also up sharply, rising 18.8%, to an annualized rate of 1.495 million.
– Mario Ferro
At the time of this writing, the author did not have positions in any of the companies mentioned.
