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Housing Stocks Lead the Way Ahead of Holiday Weekend


Today's financial recap and tomorrow's financial outlook.

On Friday, we saw a repeat of yesterday's action as we witnessed modest gains in the major indices while some risky assets showed relative strength.

The S&P 500 (INDEXSP:.INX) finished up 0.4% for a record close at 1,900.53 while the small-cap Russell 2000 (INDEXRUSSELL:RUT) outperformed with a 1.1% gain.

Housing stocks were on fire once again,with the iShares Dow Jones US Home Construction ETF (NYSEARCA:ITB) notching a 2.1% gain, ignited by positive economic data. April New Home Sales came in at 433,000, which was slightly ahead of the 425,000 consensus. March's number was revised up to 407,000 from 384,000.

Technology stocks also performed well, boosted by Hewlett-Packard's (NYSE:HPQ) 6.1% surge. The company reported in-line first-quarter earnings with weaker-than-expected revenues and guidance, but investors were encouraged by stabilization in its PC business and an expansion of its cost-cutting program.

Elsewhere in earnings, shares of video game retailer GameStop (NYSE:GME) rose 4.2% to $38.43 after reporting first-quarter earnings that were ahead of analysts' estimates.

Foot Locker (NYSE:FL) was up 1.6% after exceeding Wall Street's earnings and revenue forecasts.

Marvell Technology (NASDAQ:MRVL) was another earnings winner, trading up 1.9% on its impressive first-quarter earnings report.

Tesla Motors (NASDAQ:TSLA) gained 1.2% after an executive from Japanese electronics conglomerate Panasonic expressed interest in becoming the exclusive provider of lithium-ion battery cells for Tesla's new factory. The implication is that Tesla would extract favorable terms on a deal.

And finally, Russian stocks extended their recent rally as President Vladimir Putin said he would respect the results of Ukraine's presidential election, which is scheduled for Sunday. That may be a sign that the crisis is nearing its end. The Market Vector Russia ETF Trust (NYSEARCA:RSX) rose 1.3%.

Tuesday's Financial Outlook

The market action was pretty slow headed into the Memorial Day weekend, but there is a chance for overseas volatility related to the Ukraine elections.

For Tuesday, we have some market-moving economic reports on tap, with April Durable Goods, March Case-Shiller housing report, and May Consumer Confidence being released in the morning.

Earnings season is still winding down. The only major names reporting are AutoZone (NYSE:AZO) and Scotiabank (NYSE:BNS).

Twitter: @Minyanville

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No positions in stocks mentioned.

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