Housing Sector Finding A Bottom
The market got another nice bounce at the open, but is fading a bit. Yields on the 10-year note are falling further to 4.73%. I don't think the bond market is signaling more rate hikes, despite the chatter in the media.
New home sales came in better than expected this morning. This is helping the housing index bounce. Even those homebuilder companies that reported weak earnings saw their stocks go up. That's usually a good sign that we've reached a bottom.
Biotech stocks are leading this morning (+1.5%). CELG is up quite a bit.
How long can this market keep powering ahead? Tough to say. A quick, sharp pullback would probably shake investor confidence, but I still think we will be higher by year-end.
In other news and notes:
- The Help Wanted index hits 45-year low
- SNE profits drop -94% on battery recall
- AET beats EPS, raises guidance
- HAR beats earnings; gaps 20% higher
- VAR beats and raises; stock gaps +11%
- ORCL planning to move big into Linux; RHAT -27%
- DOW beats earnings, ups buyback
- BYD misses earnings; stock flat
- CMCSA beats earnings
- ISE downgraded at CIBC after big run
- WFR inks 10-year contract with Gintech of Taiwan
- CRS misses estimates; stock gaps lower
long DOW, ISE, WFR, VAR