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Minyanville's Market Recap: Housing Ugly, Financials Get Pulled Down, Markets Still Gain


Markets gained but the picture is still not pretty. Foreclosures pull down Housing and Financials

U.S. Stocks advanced today amid continued weakness in the housing sector. The Dow gained +0.44% to 13,363, The Nasdaq Composite gained +0.3% to 2,614, and the S&P 500 gained +0.43% to 1478.

As the health of the nation's economy is the main focus, investors were nervously watching for signs of consumer spending in some of the largest retailers. Wal-Mart (WMT) helped boost the bullish sentiment by reporting better-than-expected sales figures. The world's largest retailer reported August same-store sales increasing by 3.1% vs. its previous predictions of 1-2%. Read more retail analysis with Professor Macke's The Shopping Bag.

Home builders and financials took a beating as a report by the National Association of Realtors showed the number of Americans who may lose their homes to foreclosure rose to a record in the second quarter. In addition late payments by subprime borrowers surged to one out of every seven loans. (From Bloomberg) Hovnanian (HOV) led the way with a loss of -3.7%, followed by Meritage (MTH) -2.4%, and Ryland (RYL) losing -2.7%. Among the financials, Bear Stearns (BSC) lost -1.1%, Lehman Brothers (LEH) lost -0.9%, and Merril Lynch (MER) lost -0.4%. For more analysis, please read Professor Depew's Five Things You Need To Know.

In the tech sector, Apple (AAPL) made headlines as chief executive Steve Jobs issued a letter apologizing after numerous complaints of yestereday's price cut on the iPhone. Jobs stated consumers who bought the iPhone would receive a $100 credit. Professor Udall stated on the Buzz and Banter that this was an excellent response by management and the sell-off presented a good entry point. Read more of what happened on the Buzz with our Buzz Bits. In addition, read Toddo's Morning Round-Up as it summarizes this morning's events.

In economic data today, Initial claims came in better than expected at 318 k vs. 330 k cons. The prior week was revised to 337 k from 334 k. Crude inventories data was released a day late due to Monday's Labor Day holiday. Inventories came in at -3,975 k vs. -2,200 k consensus.

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

Bullish trade or investment ideas: AAPL, ZUMZ, JASO, ASTI, FSLR, GLD, XMSR, TASR, MDVN, COST, JWN, CELG, SSRI, JNPR, ABX, TSO

Bearish trade or investment ideas: AAPL, WMT, CFC, CPU, GOOG, TEX, UA, FMD, TIBX, CSGP, GRMN, MA, AZO, RYL, KFY

Tomorrow's Friday, Minyans. Make sure you review through Minyan Peter's Minyan Mailbag before coming back to work tomorrow as he warns that this is an entirely different market. Rest up! See you bright and early!
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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.

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