ECONOMIC SILUET: Nasdaq erases gain as tech turns negative | Housing starts drop

Selasa, 18 Mei 2021

Nasdaq erases gain as tech turns negative | Housing starts drop | Teens can trade on Fidelity

TUE, MAY 18, 2021

EVENING BRIEF

AS OF TUE, MAY 18, 2021 • 05:08 ET

DJIA		34060.66
		-0.78%	-267.13

S&P 500		4127.83
		-0.85%	-35.46

NASDAQ		13303.64
		-0.56%	-75.41

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DOW
NAME	LAST	CHG	%CHG
AAPL	124.85	-1.42	-1.12%
VZ	57.18	-0.76	-1.31%
MSFT	243.08	-2.10	-0.86%

S&P 500
NAME	LAST	CHG	%CHG
T	29.55	-1.82	-5.80%
F	12.14	-0.01	-0.08%
AAPL	124.85	-1.42	-1.12%

NASDAQ
NAME	LAST	CHG	%CHG
AAPL	124.85	-1.42	-1.12%
TSLA	577.87	+1.04	+0.18%
CMCSA	54.95	-0.51	-0.91%

EDITOR'S NOTE

A stock market that is struggling for direction was met with another round of befuddling data on Tuesday, as housing data suggested an unexpected retreat in what had been one of the U.S. economy's hottest sectors.

Housing starts dropped 9.5% month over month, much worse than expected, while building permits increased only slightly. The report builds on a recent trend of soft economic reports, including retail sales, that could signal that the recovery is nearing the peak of its growth phase.

However, there are signs that the housing sector's issue might be supply and not demand. That means the report's miss doesn't necessarily tell the market much about the underlying economy.

"I have to blame the difficulty in procuring lumber and other products, along with labor issues for the miss, in addition to likely cancellations due to skyrocketing costs for single-family starts," said Peter Boockvar, the chief investment officer at Bleakley Advisory Group.

"Multi-family strength, using more steel than lumber (though steel prices are thru the roof too), is evidence that the predicted demand for rentals will remain strong, especially in light of the aggressive home price increases that are pricing out many first-time, younger buyers," he added.

The confusing housing data mirrors a market that appears caught in a trading range, waiting for the next catalyst.

The S&P 500 slid nearly 0.9%, while the Dow lost more than 260 points on Tuesday. The Nasdaq Composite declined 0.5% as tech stocks turned negative. The market yawned at a blowout earnings report for Home Depot, and the stock fell 1%.

Meanwhile, Fidelity announced that it is launching a new brokerage account product aimed at potential investors between ages 13 and 17. If the stock market needs an injection of energy, maybe the teenagers can spice things up.