By Anora Mahmudova and Carla Mozee, MarketWatch
Drop in oil weighs on energy stocks
U.S. stocks switched between small gains and losses, as the
S&P 500 and Dow struggled to push further into record
territory. Both indexes hit intraday records in early trade.
Declines in oil prices weighed on energy stocks, with the sector
selling off sharply. Meanwhile, investors digested a report showing
a sharp increase in housing starts last month any effect it might
have in determining the course of the Federal Reserve's interest
rate policy.
The S&P 500 index (SPX) was trading near the flatline at
2,130, with the 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, put on 25 points, or 0.1%, to 18,323. The Nasdaq
Composite (RIXF) was flat at 5,075.22.
Recent trading volume has been thinner than usual, with Monday's
session seeing the second-lowest trading volume of the year so
far.
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) is expected to report
break-even earnings 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 more than 2%, while gold prices (GCM5)
slid more than 1%.
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