This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Stocks Manage Mild Gains on Strong Housing Data


NEW YORK ( TheStreet) -- The major U.S. equity averages overcame weakness in the tech sector to close in positive territory Wednesday as strength in housing starts prompted a rally in basic materials stocks.

Earnings disappointments from heavyweights IBM (IBM) and Intel (INTC) were a headwind for the broad market all day, but overall breadth was very positive throughout the session.

The Dow Jones Industrial Average gained more than 5 points, or 0.04%, to finish at 13,557. The blue-chip index, which has now built its winning streak up to four days, ran as low as 13,469 during the session.

Breadth within the Dow was positive with winners ahead of losers, 23 to 7. The biggest percentage gainers were Alcoa (AA), Caterpillar (CAT), Johnson & Johnson (JNJ), and Walt Disney (DIS).

IBM and Intel were by far the biggest losers among the blue chips. IBM's stock dropped 4.9% after Big Blue came up short on revenue in the third quarter, while Intel shares fell 2.5% after the world's biggest chip maker's outlook failed to impress.

Aside from IBM and Intel, Cisco (CSCO), Coca-Cola (KO), McDonald's (MCD), and UnitedHealth (UNH) were among the other Dow decliners.

Shares of Bank of America (BAC) slipped 0.21% after the Charlotte, N.C.-based bank edged Wall Street's profit view.

The S&P 500 closed up 6 points, or 0.41%, at 1461, while the Nasdaq lost 3 points, or 0.10%, to settle at 3104.

The strongest sectors were basic materials, conglomerates, energy and utilities. Only the technology finished in the red.

Advancers were ahead of decliners by a 2-to-1 ratio on the New York Stock Exchange, and 1.5-to-1 on the Nasdaq. Volume totaled 3.64 billion on the Big Board and 1.77 billion on the Nasdaq.

The latest read on builder confidence came in much better than expected after the Census Bureau said housing starts rose to a seasonally adjusted annual rate of 872,000 in September from an upwardly revised 758,000 in August. Economists were expecting a rate of 770,000 for September. The SPDR S&P Homebuilders (XHB) index surged nearly 2%.

"While we are nowhere near the peak, one has to go back to the middle of 2008 to find the last time starts were running at this level," said Dan Greenhaus, chief global strategist at BTIG.

"If there was any doubt that the housing market was undergoing a recovery, even a modest one in the face of the terrible 2008 decline, those doubts should be erased by now," he added.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
EBAY $59.20 0.00%
XHB $35.95 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs