The markets traded higher today following a temporary easing of restrictions on Huawei which gave investors confidence to put some risk on. The Dow 30 closed higher by 197 the S&P 500 gained 24 and the Nasdaq closed higher on the day by 83.
Existing home sales fall to an annualized rate of 5.19 million which came in below the 5.35 million expectations. The median home price was higher by 3.6% to $267,300 which is the highest ever reading for the month of April. The National Association of Realtors cited limits on tax deductions as the reason for slowing sales of homes on the higher end. Sales in the Western US were the only region to enjoy a pop in purchases.
Semiconductors (SMH ) saw a recovery rally today partially on the news of easing restrictions on Huawei for now. Though China's largest phone maker was not happy with the decision it did help chip stocks recover from the recent price plunge. Technical traders will cited the support of the 200 day moving average along with the short term oversold condition of the sector.
Healthcare (XLV ) hinted at some relative strength on Monday and since then has shown more strength. Technical traders are looking at a clear downtrend line as the next resistance area to ty and break through to help the underperforming sector. For the year this is the worst performing sector in the S&P 500.
Home Builders (XHB ) enjoyed some strength on reports of new home construction beating estimates for last month along with higher sentiment from builders about the state of the industry. One negative was single family home permits which fell to a new 3 year low which is used as a forecast for future construction numbers.
Tesla (TSLA ) shares were in the news today as Morgan Stanley (MS ) said their worst case target for Tesla is now $10. The analyst firm currently has a price target of $230 but has a history of taking both sides with their "worst case" targets. The analyst says that they have concerns about profitability and Chinese demand which led them to lower their worst case target. Shares traded lower on the news but hovered around the $200 area.
Kohls (KSS ) shares took a beating today as the company reported earnings that were lower than expected by 7 cents. Though revenue was just above expectations investors focused on sales which missed by a wide margin. Sales were expected to drop but only by 0.2%. The company reported a sales decline of 3.4% which caused them to guide lower for the rest of the year.
AutoZone (AZO ) shares enjoyed a strong day today as the company reported earnings that easily beat expectations. Store sales continue to be on fire as well with year over year growth of 3.9%. This marks the 5th earnings beat in a row for the parts retailer.
JCPenney (JCP ) shares were lower on the day following another disappointing earnings season. The company lost more than Wall Street expected thanks to more slowing sales than expected. Same store sales dropped 5.5% versus 4.2% expected leaving investors bearish.