Airlines, Homebuilders Lead Mixed Session

Airline stocks outperformed in the stock market today as oil prices plunged. Meanwhile, homebuilders outperformed as the 10-year Treasury yield fell further below the 3% level. It was trading around 2.93%, down another 5 basis points, after hitting a high of 3.11% on May 17.


Selling was contained in the stock market today as the Dow Jones industrial average and S&P 500 eased 0.3%. The Nasdaq composite edged higher by 0.1%. Volume on the NYSE and Nasdaq was tracking lower than Thursday’s levels ahead of the three-day weekend. The stock market will be closed Monday in observance of Memorial Day.

The airline group was up nearly 3% in late trading. Strong performers in the group included Spirit Airlines (SAVE), Alaska Air (ALK), Southwest Airlines (LUV) and American Airlines (AAL) with gains of 3% to 4%. Airline stocks have been on lengthy downtrends.

Homebuilders also outperformed amid falling interest rates, but like the airline stocks, they been hit hard by selling in recent months as well. Lennar (LEN) was a top gainer in the group, rising about 4%.

Stock Market Today: Oil Slumps 4%

Inside the IBD 50, WildHorse Resource  Development (WRD) took a hit along with many other oil and gas names, falling 5%. U.S. crude oil futures settled at $67.88 a barrel, down 4%, after Saudi Arabia talked about higher output in the second half of the year. Oil and gas-related industry groups were among the hardest hit Friday, with losses ranging from 2% to 5%.

Sector Leader Diamondback Energy (FANG) looked poised to extend its losing streak to four sessions. Shares slumped 4% after crashing 8.6% in the prior three sessions. Recent signs of institutional selling in the fast-growth oil and gas producer knocked its Accumulation/Distribution Rating down to D-.

In stock market results today, earnings reports dominated the headlines again.

Splunk (SPLK) lost nearly 5% despite reporting its third straight quarter of 30%-plus ales growth. Another top-performing software stock, Veeva Systems (VEEV), reversed lower despite strong results.

In the retail space, earnings losers had the upper hand over gainers, but Foot Locker (FL) was a bright spot. Shares gapped and rose 20% to 55.53 in late trading. It cleared a bottoming base with a conventional entry at 53.27.

On the downside, Ross Stores (ROST) gapped below the 50-day moving average, falling 7%, after its outlook disappointed. Meanwhile, shares of The Gap (GPS) plunged 13%, after same-store sales fell more than expected.


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Originally posted 2019-09-19 23:15:05.


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