Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Minyanville's Market Recap: Housing Gets Uglier, Stocks End The Day Flat

By

Housing Data and Consumer Confidence painted an ugly picture: It may be surprising that stocks even ended the day flat.

PrintPRINT
Stocks ended the session flat today. The Dow Industrials added +0.19% to close at 13,784, the S&P 500 lost -0.03% to close at 1,517, and the Nasdaq Composite added +0.58% to close at 2,683.

Equities were flat for much of the day even as a number of events weighed down on stock prices. Retailers were under significant pressure this morning as Lowe's (LOW) revised its guidance lower citing drought conditions in various parts of the country. Target (TGT) also made headlines when it cut same-store sales figures for the month of September. As expected, our retail specialist Professor Macke chimed in with his article Bringin' It Home, advising readers not to overreact: "Target coming in light certainly isn't a good sign, but it's hardly an entire 'short the consumer' thesis by itself any more than Target's strong quarter meant it was going to be a great Christmas."

Homebuilders were hurt by economic data today. Existing home sales came in at 5.50 mln versus 5.48 mln cons. In addition the S&P/ Case-Shiller home-price index was also released. The index showed home prices in 20 U.S. metropolitan areas fell the most on record in July, dropping 3.9% versus a 3.4% drop in June. The index declined in January for the first time since the group began tracking the data and the index has fallen every month since. (From Bloomberg) Please read Professor Depew's Five Things You Need To Know as he gives more color on this disturbing trend.

Lennar (LEN) had a decidedly negative performance. The company reported its biggest quarterly loss in its 53-year history. The stock fell almost 4%. Other notables include D.R. Horton (DHI) losing -2.0%, Ryland Group (RYL) losing -2.3%, and Hovnanian (HOV) losing -1.7%. As other professors predict a bottom in housing is near, Professor Zucchi stuck to his guns forecasting the Philly Housing Index (HGX) to be in double digits.

Consumer Confidence was also released, coming in at 99.8 versus 104.3 cons. The figure fell to its lowest level in almost two years, causing investors to wonder about the health of the consumer.

Financials ended the day mixed. Minyan Peter was back in action digging through Discover Financial Services' (DFS) numbers. The company reported 3Q earnings better than expected with $0.42 EPS versus $0.38 cons. Minyan Peter was unconvinced, citing on the Buzz a lack of a dividend and a drop in managed margins amongst other things. DFS ended up closing -2.4% on the day. Other notable financials were Merrill Lynch (MER) losing -2.1%, Morgan Stanley (MS) losing -1.4%, and Countrywide (CFC), back at the 18 level and losing -1.2%. Toddo always says, "As go the financials, so goes the tape." Click here to read the rest of today's Random Thoughts.

For more summaries of what happened on the Buzz & Banter, please click on our Buzz Bits.

Tomorrow, investors will get another clue of the health of the economy when Durable Goods data is released at 8:30 AM EST. Economists expect the figure to decrease by -2.5%. Weekly crude inventories will also be released at 10:30 AM EST. Last week's figure showed a draw in inventories of -3874 k. Please click here for the full trading radar.

Below is a recap of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.

Some bullish trade or investment ideas: VAR, SECTB, HOKU, GVP, BRCM, IVNYY, NVDA, SNCR, MSFT, SYMC, MFE, DISH, ARRS, MAN, VRSN

Some bearish trade or investment ideas: TGT, XHB, SPF, COF, BHI, DXY, LOW, HGX, DES, IYR, CFC, CSGP, AAPL, Crude, Energy

Ok, Minyans. Hope you had a great day. Please join us again tomorrow as Hoofy and Boo have cooked up another great video. Y'all have a good night!
No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE