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T3's Take 3: Retail Stocks Rock Despite Failed SPX Rally
By
T3 Live Staff Nov 17, 2015 4:51 pm
Today's financial recap and tomorrow's financial outlook.
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European Equities Slam Higher
As the dust continues to settle following last Friday's terrorist attacks in Paris, shares in Europe were green for the second straight day.
The action was supported by expectations of additional stimulus from the ECB. The bank's chief economist Peter Praet told Bloomberg News that he see is concerned about how long it will take for inflation to rise, which sent the euro lower and stocks higher.
After opening slightly under yesterday's low, the French CAC 40 index started its climb and never looked back, finished up 2.8%. The German DAX was also strong, closing near the highs of the day, up 2.41%.
In recent weeks, ECB President Mario Draghi hinted at possible stimulus actions.
Additionally, Greece reached a preliminary deal with its international lenders, which could be endorsed by the Euro Working Group on Friday.
As France continues its airstrikes in Syria, European defense and military stocks saw modest gains. Conversely, crude oil back peddled and closed down 2.3% at $40.79.
US Market Action
Following an impressive rally to kick off the week, US stocks took a breather on Tuesday in the face of yet another round of mixed economic data.
The Consumer Price Index rose 0.2% year-over-year in October, beating the 0.1% consensus.
However, the Industrial Production and NAHB Housing Market Index reports failed to meet expectations.
The S&P 500 hit an early morning high of 2066.69, good enough to put it up 0.7% on the day, but the index drifted lower to close at 2050.44, down 0.1%.
The strong CPI number sent the dollar higher, while commodity prices slumped. Gold was the notable loser with a 1.4% drop to $1068.60 per ounce.
Energy and utilities stocks fell as crude oil slumped back below $41 a barrel.
Retail Stocks Shine
Aside from biotechnology, retail stocks were the best performers today on the back of strong earnings from Wal-Mart (WMT) and Home Depot (HD).
Wal-Mart shined today with an 3.5% rally. The company beat third-quarter earnings estimates and issued a 2016 outlook that was ahead of consensus estimates.
Home improvement Home Depot also reported better-than-expected earnings and guidance. Home Depot sees full-year earnings at the high end of its $5.31 - $5.36 range. The company also said it expects to buy back $2 billion worth of shares in Q4.
The stock rose 4.4% to $126.18.
The Market Vectors Retail ETF (RTH) rose 1.2% today, representing enormous outperformance relative to the major averages.
Wednesday's Financial Outlook
On tomorrow's US economic data calendar, we have MBA Mortgage Applications, Housing Starts, Building Permits, and Minutes from the last FOMC meeting.
Overseas, Japan will release its Monetary Policy Statement
Lowe's (LOW), Staples (SPLS), and Target (TGT) report earnings before the open.
Ctrip.com (CTRP), Keurig Green Mtn (GMCR), NetApp (NTAP), and Salesforce.com (CRM) will deliver their earnings report after the close.
As the dust continues to settle following last Friday's terrorist attacks in Paris, shares in Europe were green for the second straight day.
The action was supported by expectations of additional stimulus from the ECB. The bank's chief economist Peter Praet told Bloomberg News that he see is concerned about how long it will take for inflation to rise, which sent the euro lower and stocks higher.
After opening slightly under yesterday's low, the French CAC 40 index started its climb and never looked back, finished up 2.8%. The German DAX was also strong, closing near the highs of the day, up 2.41%.
In recent weeks, ECB President Mario Draghi hinted at possible stimulus actions.
Additionally, Greece reached a preliminary deal with its international lenders, which could be endorsed by the Euro Working Group on Friday.
As France continues its airstrikes in Syria, European defense and military stocks saw modest gains. Conversely, crude oil back peddled and closed down 2.3% at $40.79.
US Market Action
Following an impressive rally to kick off the week, US stocks took a breather on Tuesday in the face of yet another round of mixed economic data.
The Consumer Price Index rose 0.2% year-over-year in October, beating the 0.1% consensus.
However, the Industrial Production and NAHB Housing Market Index reports failed to meet expectations.
The S&P 500 hit an early morning high of 2066.69, good enough to put it up 0.7% on the day, but the index drifted lower to close at 2050.44, down 0.1%.
The strong CPI number sent the dollar higher, while commodity prices slumped. Gold was the notable loser with a 1.4% drop to $1068.60 per ounce.
Energy and utilities stocks fell as crude oil slumped back below $41 a barrel.
Retail Stocks Shine
Aside from biotechnology, retail stocks were the best performers today on the back of strong earnings from Wal-Mart (WMT) and Home Depot (HD).
Wal-Mart shined today with an 3.5% rally. The company beat third-quarter earnings estimates and issued a 2016 outlook that was ahead of consensus estimates.
Home improvement Home Depot also reported better-than-expected earnings and guidance. Home Depot sees full-year earnings at the high end of its $5.31 - $5.36 range. The company also said it expects to buy back $2 billion worth of shares in Q4.
The stock rose 4.4% to $126.18.
The Market Vectors Retail ETF (RTH) rose 1.2% today, representing enormous outperformance relative to the major averages.
Wednesday's Financial Outlook
On tomorrow's US economic data calendar, we have MBA Mortgage Applications, Housing Starts, Building Permits, and Minutes from the last FOMC meeting.
Overseas, Japan will release its Monetary Policy Statement
Lowe's (LOW), Staples (SPLS), and Target (TGT) report earnings before the open.
Ctrip.com (CTRP), Keurig Green Mtn (GMCR), NetApp (NTAP), and Salesforce.com (CRM) will deliver their earnings report after the close.
No positions in stocks mentioned.
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