By Anora Mahmudova and Carla Mozee, MarketWatch
April sees sharp rebound in new home construction
U.S. stocks were trading slightly lower on Tuesday, with the
main indexes retreating from record levels set during the previous
session.
Investors digested a report showing a sharp increase in housing
starts last month.
The S&P 500 index (SPX) was off by less than a point at
2,128.40, with energy sector leading losses. The Dow Jones
Industrial Average (DJI), which closed at all-time highs
(http://www.marketwatch.com/story/us-stocks-slow-start-seen-for-wall-street-but-strategists-upbeat-on-sp-500-2015-05-18)
on Monday, gave up about 9 points, or 0.2%, to 18,265. The Nasdaq
Composite (RIXF) was flat at 5,078.44.
Yesterday's trading action came amid the second lowest trading
volume of the year as the corporate-earnings season winds down and
few significant economic reports were slated Monday.
Describing recent record levels, Andrew Adams, chief market
technician at Raymond James, wrote it was anticlimactic. "Since
closing at all-time highs last Thursday, the past two sessions have
only seen us gain nine points on fairly lackluster volume, and the
internals have not been very compelling either," Adams wrote in a
note to investors.
But he is still optimistic: "Unless we fall back into the
sideways mess, I remain optimistic and will gladly take boring
profits over exciting losses any day."
Data:Construction started on new U.S. homes sprang up 20.2% in
April
(http://www.marketwatch.com/story/us-housing-starts-shoot-up-202-in-april-to-114-million-annual-rate-2015-05-19)to
a seasonally adjusted annual rate of 1.14 million, hitting the
fastest rate since late 2007 and far above forecasts.
Corporates: In companies, Wal-Mart (WMT) shares fell 3.3% after
the world's largest retailer's first-quarter profit and sales fell
short of expectations
(http://www.marketwatch.com/story/wal-marts-stock-drops-after-profit-sales-miss-expectations-2015-05-19).
Home-improvement retailer Home Depot(HD) also reported before
the bell, posting a rise in first-quarter earnings and sales. It
raised its sales guidance for fiscal 2015 and said it would
repurchase another $3.4 billion in shares over the rest of that
year. Shares rose were 0.6% higher.
Retailer TJX Cos.(TJX) shares jumped 3.5% after sales beat
estimates and the company raised its full-year outlook.
After the closing bell, Etsy Inc.(ETSY) will report after the
bell and is expected to break even in the first quarter. The report
will mark the first quarterly result announcement since the online
site, which specializes in handcrafted goods, went public in
April.
Take-Two Interactive Software Inc. (TTWO) shares jumped 15%
after the videogame maker's earnings beat Wall Street
estimates.
For more on today's movers read Movers & Shakers column
(http://www.marketwatch.com/story/wal-mart-home-depot-tjx-etsy-earnings-in-focus-2015-05-18).
Other markets: European equities rallied. The rises came after a
high-level European Central Bank official, Benoît Coeuré, said the
bank will step up its buying of euro-area assets in May and June
(http://www.marketwatch.com/story/euro-falls-after-ecbs-coeure-says-bank-will-front-load-qe-buying-2015-05-19)
to compensate for low liquidity in the summer months.
The euro (EURUSD) slid against the dollar after Coeuré's
comments, dropping below $1.12. The shared currency still was
floating lower, briefly moving higher after a final reading on
eurozone inflation for April was released.
Overnight in Asia, Shanghai stocks rallied 3%, their biggest
gain in nearly four months, after China unveiled plans
(http://www.marketwatch.com/story/china-delivers-plan-to-upgrade-manufacturing-2015-05-19)
to boost the competitiveness of its manufacturing sector.
Oil futures (CLM5) fell nearly 2%, while gold prices (GCM5) slid
more than 1%.
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