The markets traded lower once again today after starting higher just as it did yesterday. The bulls continue to find no real catalyst to be long at these levels with all of the underlying, weak economic news. The Dow ultimately closed the day lower by 31, the S&P 500 sold off 13, and the Nasdaq lost 48.
Sector News
Homebuilders (XHB ) were higher on the day thanks to a positive response to two of the larger homebuilders. Technical traders note the successful hold of the 200 day moving average along with the 50 day moving average moving above the 200 day for the first time since this time last year.
Utilities (XLU ) pulled back from all time highs today, decoupling from the continued decline in yields. Yesterday, over 30% of the stocks making new 52-week highs were in the utility sector as money continues to flow into the space.
Stock News
Lennar (LEN ) shares were higher today despite the company missing earnings by a penny along with revenue. Investors focused on the new orders number which showed a 24% uptick along with a 30% bump in new home deliveries. The company also said they see a favorable housing market in the near term following a clear interest rate forecast by the Federal Reserve.
KB Home (KBH ) was another home builder to enjoy a strong day after releasing their earnings as well. The company beat on earnings but missed on revenue thanks to lower selling prices but investors focused on the increase in new orders as well as the favorable comments from Lennar.
Southwest Airlines (LUV ) shares were in the news today for a few reasons. First, an emergency landing at Orlando airport on a 737 Max plane with only the pilots on board made national news however the emergency was for other engine issues not related to the current software issues. Separately the company lowered their forecast for the first quarter in part to weather and the ongoing issues with the grounding of the 737 max planes.
