Stocks slip as consumer confidence comes up short
New home sales fell 5.9% in April
Which ‘pent-up demand stocks’ should investors focus on?
Kadina Group president Gary B. Smith, Key Advisors Group CEO Eddie Ghabour and Money Map Press chief strategist Shah Gilani discuss today’s markets and which stocks to keep an eye on in the reopening trade.
U.S. equity markets slid Tuesday following the disappointing consumer confidence reading.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44736.57 | +440.06 | +0.99% |
| SP500 | S&P 500 | 5987.37 | +18.03 | +0.30% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19054.835014 | +51.18 | +0.27% |
The Dow Jones Industrial Average fell 82 points, or 0.24%, while the S&P 500 and the Nasdaq Composite lost 0.21% and 0.03%, respectively. The losses came after the major averages opened the session to gains, but turned lower after May consumer confidence printed at 117.2 – below the 119.5 that was expected. The prior month's reading was revised down to 117.5 from the initial print of 121.7.
In other economic news, national home prices rose 13.2% annually in March, making for the biggest increase in 15 years, according to Case Shiller. However, a separate report showed new home sales fell 5.9% month over month in April as higher prices served as a headwind. Shares of Homebuilders rallied despite the larger-than-expected decline in new home sales.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TOL | TOLL BROTHERS INC. | 167.80 | +10.21 | +6.48% |
| DHI | D.R. HORTON INC. | 172.94 | +9.44 | +5.77% |
| LEN | LENNAR CORP. | 178.66 | +9.49 | +5.61% |
WOKENESS AT FED'S REGIONAL BANKS PUTS CENTRAL BANK INDEPENDENCE AT RISK
Elsewhere, Boeing Co. received an order from aircraft leasing business SMBC Aviation Capital for 14 additional 737 Max jets. Delivery of the aircraft will begin later this year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 153.10 | +3.81 | +2.55% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 96.83 | +1.59 | +1.67% |
United Airlines Holdings Inc. raised its yield forecast for the current quarter due to increased demand for domestic leisure travel. The airline sees total revenue for each seat mile down 12% compared to the same period in 2019, an improvement from its previous estimate of a 20% decline.
Meanwhile, Shake Shack Inc. shares spiked after receiving an upgrade to "buy" from "neutral" at Goldman Sachs, which cited the recent 35% pullback as a buying opportunity.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SHAK | SHAKE SHACK | 129.42 | +6.41 | +5.21% |
In earnings, AutoZone Inc. blew past Wall Street estimates for both earnings and revenue as same-store sales surged 28.9% year over year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AZO | AUTOZONE INC. | 3,109.56 | +10.18 | +0.33% |
| RIDE | NO DATA AVAILABLE | - | - | - |
Lordstown Motors Corp. said 2021 production will be half of expectations and that it will need to raise additional capital to deliver on its plans. The company reported a larger-than-expected quarterly loss.
In commodities, West Texas Intermediate crude oil ticked up 2 cents to $66.07 per barrel and gold added $13.50 to $1,898.10 per ounce.
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Overseas markets ended mixed.
Germany’s DAX 30 eked out a gain of 0.18% while France’s CAC 30 and Britain’s FTSE 100 slipped 0.28% and 0.31%, respectively.
In Asia, Japan’s Nikkei 225 advanced 0.67%, Hong Kong’s Hang Seng index climbed 1.75% and China’s Shanghai Composite jumped 2.41%.