Intraday Market Update
US equities are posting solid gains and have broken to multi month highs after decent home sales data and a better than expected October Dallas Fed manufacturing survey. The S&P 500 gapped +7 points higher at the open and reached a high of 1,196 (+13 points) before sellers stepped in pushing the index down to 1,184. In mid-day trading all of the indexes are posting gains in the +0.50% to +0.90% range. The US Dollar is under pressure in reaction to the G20 meeting and that is helping stocks and commodities. Gold has gained +$14 (+1%) but is well off of its highs. Crude oil has gained +0.60% but is finding resistance in the $83 to $84 range, while silver and copper are posting nearly +2% gains. Overseas, the Asia-Pacific region posted solid gains, while European markets sold off late but still posted slight gains.
There is good news and bad news in the September existing home sales report. The bad news is that the median home price fell -3.3%, while the average price fell -3.5%. The good news is the annual pace of existing home sales jumped +10.0% to 4.53 million units. The jump in sales helped clear out the supply of homes on the market which fell -1.9% to 4.04 million units. The supply of homes on the market is now 10.7 months compared to 12.0 months in August and 12.5 months in July.
In equities, shares of Radio Shack (RSH) are down nearly -8%, despite beating earnings and revenue estimates in its Q3 report. Investors appear to be concerned by much smaller than expected gross margin numbers as sales increased for lower margin phones. Office Depot has gained nearly +8% after saying they expect earnings of 3 cents compared to estimates for a small loss. Tobacco firm Lorillard (LO) is up +1.7% after the firm handily beat earnings and revenue estimates. CommScope (CTV) is up +30% after the firm confirmed that it is in discussions with private equity firm Carlyle Group regarding a potential transaction that would result in CTV becoming a private company. CTV said the terms of the potential deal would be for Carlyle Group to acquire all outstanding shares of the company for $31.50 per share. CTV is trading near $30.
Core Sector List:
Overall reading: 18 sectors advancing, 2 sectors declining
Strongest Sectors: Semiconductors, Miners, Biotechnology
Weakest Sectors: Banks, Utilities
S&P 500 - Daily and Hourly Charts:
Dow Jones - Daily and Hourly Charts:
NASDAQ - Daily and Hourly Charts:
Russell 2000 - Daily and Hourly Charts: