After The Close
The stock market put in a mixed session today, as traders digested the latest batch of corporate earnings announcements, and kept an eye on developments overseas. At the end of the day, the Dow Jones Industrial Average was down 102 points; the broader S&P 500 Index was off two points; but the NASDAQ was higher by 21 points.
Market breadth showed a fragmented session, too, with advancers about even with decliners on the NYSE. Among the major equity sectors, the healthcare and financial names moved higher, offsetting weakness in the consumer and basic materials issues.
In economic news, housing starts rose to 1.32 million units, annualized, during the month of October, with a solid gain in building permits, as well. Both of these readings came in nicely ahead of the consensus forecast. Tomorrow, we will get a look at the minutes from the FOMC’s latest meeting. The EIA will also publish the weekly crude oil inventory numbers.
In the corporate arena, a number of retailers reported their numbers today. Shares of The Home Depot (HD – Free Home Depot Stock Report) slipped in price after the specialty retailer put out results that failed to impress investors. Weakness here probably put a damper on the Dow Jones Industrial Average. In addition, Kohl’s Corp. (KSS) stock sank, after that company lowered it guidance. It did not help matters that shares of Macy’s (M) were under pressure on news of a data breach.
Technically, the stock market has been pressing ahead. The S&P 500 Index is near new high ground, as we head into the holiday season, and many traders are likely wondering if further gains will be in store, as the year comes to a close.
– Adam Rosner
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
Before The Bell
Following the excitement of last week, in which optimism that a trade deal with China might soon be consummated had helped the Dow Jones Industrial Average soar past 28,000 for the first time ever, the equity market drew a collective yawn yesterday morning. On point, the major large-cap averages spent the better part of the first half of the trading session going in and out of the green, with the Dow, for example, ranging from a loss of some 30 points to a gain of similar magnitude.
Indeed, as we passed the first three hours of trading, the blue chip composite was residing near the breakeven line. The story was similar for the S&P 500 Index and the NASDAQ. This uneven pattern would continue as we moved a bit further into the afternoon, but the Dow's efforts to extend its small early afternoon gains were held in check by some evolving pessimism on the trade front. Still, the Dow and the S&P 500 did manage to secure records, while the NASDAQ was on the doorstep of a fresh peak.
As to the aforementioned pessimism on trade, reports have surfaced that China's officials are uncertain about the prospect of a trade accord between the two economic superpowers, being apparently troubled by the President saying recently that the United States would not roll back tariffs. China seemingly had thought the two sides would do so in principle. Meanwhile, in addition to uncertainty in the equity market gold started to edge higher on this uncertainty, while Treasury note yields fell to 1.81% in early afternoon.
The rest of the afternoon brought some modest improvement in the market, as the three large-cap composites stayed in the plus column for the duration of the session. However, the small-cap Russell 2000 would edge lower, losing four points. Treasury note yields stayed down, ending matters with a return of 1.81%. All told, the Dow, boosted by nearly a three-point advance in shares of entertainment giant Walt Disney (DIS – Free Walt Disney Stock Report) added 31 points. The S&P 500 and the NASDAQ rose slightly.
Looking ahead to a new day now, we see that stocks were mixed in Asia overnight, as uncertainty about the U.S.-China trade efforts continued. In Europe, the major bourses are showing early advances in spite of the continuing trade concerns. Also of note, oil prices are lower; Treasury note yields are edging forward again after yesterday's setback; and the U.S. futures are exhibiting early notable strength. As such, we would look for a higher start when trading resumes this morning.
– Harvey S. Katz, CFA
At the time of this article’s writing, the author did not have positions in any of the companies mentioned.
