Encouraging housing data and upbeat earnings results ensured a
positive finish for benchmarks on Tuesday. The positives offset
negative sentiment arising from ongoing geopolitical tensions in
Ukraine. Meanwhile, Apple hit a record split-adjusted closing high,
which also contributed to the bullish mood. The S&P 500 is now
10 points away from its record high. The Nasdaq closed above 4,500
points for the second-day in a row.
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Ahead of Wall Street
The Dow Jones Industrial Average (DJI) gained 0.5%, to close at
16,919.59. The Standard & Poor 500 (S&P 500) too advanced
0.5% to settle at 1,981.60. The tech-laden Nasdaq Composite Index
closed at 4,527.51; gaining 0.4%. The fear-gauge CBOE Volatility
Index (VIX) dropped 0.9% to settle at 12.21. A total of 4.5 billion
shares were traded on Tuesday, less than last five day's average of
5.2 billion. Advancers outpaced declining stocks on the NYSE. For
61% stocks that advanced, 35% declined.
The U.S. Census Bureau and the Department of Housing and Urban
Development announced privately-owned housing starts surged 15.7%
in July to a seasonally adjusted annual rate of 1,093,000.
Construction on new U.S. homes touched the highest level in July
since Nov 2013. This figure was also higher than consensus estimate
of housing starts staying at a level of 970,000. Building permits
also increased 8.1% from June to a seasonally adjusted annual rate
of 1,052,000 in July. Building permits were expected to come in at
Upbeat housing data boosted housing stocks for the second-straight
day. The SPDR S&P Homebuilders (XHB) was the biggest gainer
among the S&P 500 sectors. The sector gained 2%. Key stocks
from the sector such as PulteGroup, Inc. (
), Toll Brothers Inc. (
), DR Horton Inc. (
), Lennar Corp. (
), Beazer Homes USA Inc. (
) and KB Home (
) increased 1.5%, 2.2%, 3.3%, 3.3%, 2% and 2.7%, respectively.
Separately, the US Bureau of Labor Statistics came out with
consumer price data; wherein it reported Consumer Price Index for
All Urban Consumers improved just 0.1% in July. The increase was in
line with the consensus estimate. A drop in energy prices checked
the rise in consumer prices.
Strong earnings results from The Home Depot, Inc. (
) and The TJX Companies, Inc. (
) were welcomed by investors. Home Depot reported adjusted earnings
of $1.52 per share, up 22.6% year on year and beat the Zacks
Consensus Estimate of $1.44. Shares of the home improvement
retailer gained 5.6%, its highest one-day percentage gain since May
2009. Home Depot advanced the most among the Dow components.
TJX Companies reported earnings of 75 cents per share in the second
quarter of fiscal 2015, beating the Zacks Consensus Estimate of 73
cents. Earnings were also ahead of the year-ago results by 14%.
Shares of the company surged 8.7%.
Meanwhile, shares of Apple Inc. (
) gained 1.4% to settle at $100.53. This was the first time the
stock touched the $100 mark since the 7-for-1 stock split in June.
This was the highest spilt-adjusted closing high for Apple. The
tech-bellwether was the biggest percentage gainer among both the
S&P 500 and Nasdaq components.
The Utilities Select Sector SPDR (XLU) advanced 1.3%, the second
highest among the S&P 500 sectors. Key utilities stocks from
the sector such as such as Duke Energy Corporation (
), NextEra Energy, Inc. (
) and Southern Company (
) increased 1.1%, 1.2% and 0.9%, respectively. Overall, all the 10
sectors of the S&P 500 ended in the green.
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PULTE GROUP ONC (PHM): Free Stock Analysis
TOLL BROTHERS (TOL): Free Stock Analysis Report
D R HORTON INC (DHI): Free Stock Analysis
LENNAR CORP -A (LEN): Free Stock Analysis
BEAZER HOMES (BZH): Free Stock Analysis Report
KB HOME (KBH): Free Stock Analysis Report
HOME DEPOT (HD): Free Stock Analysis Report
TJX COS INC NEW (TJX): Free Stock Analysis
APPLE INC (AAPL): Free Stock Analysis Report
DUKE ENERGY CP (DUK): Free Stock Analysis
NEXTERA ENERGY (NEE): Free Stock Analysis
SOUTHERN CO (SO): Free Stock Analysis Report
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