Here Are 3 Hot Things to Know About Stocks Right Now

  • The Nasdaq closed at another record high Tuesday, the only one of the three major stock indexes to finish higher.
  • Home Depot (HD) - Get Report fell after the home improvement retailer posted modestly stronger-than-expected third-quarter earnings but trimmed its full-year sales guidance. Home Depot is Real Money's Stock of the Day.
  • Kohl's was tumbling after the struggling retailer posted weaker-than-expected third-quarter earnings and lowered its full-year profit guidance.

Wall Street Overview

The Nasdaq closed at another record high Tuesday, the only one of the three major stock indexes to finished higher, as a disappointing sales forecast from Home Depot and Kolh's (KSS) - Get Report , along with ongoing concerns about a U.S.-China trade agreement pull shares down.

The Nasdaq finished up 20.72, or 0.24% to 8,570.66. The Dow sank 102.20 points, or 0.36%, to 27,934.02, while the S&P 500 slipped 0.06% to 3,120.18.

All three indexes had closed at record highs on Monday.

Home Depot (HD) - Get Report was the Dow's biggest loser, falling 5.4% to $225.87, after the home-improvement retailer posted modestly stronger-than-expected third-quarter earnings but trimmed its full-year sales guidance. Home Depot is Real Money's Stock of the Day.

Chevron (CVX) - Get Report and ExxonMobil (XOM) - Get Report  also fell.

Gorilla Trades strategist Ken Berman noted that "materials, and especially the energy sector has been dragging the broader market lower, as the price of oil is sharply lower for the second day in a row after hitting a two-month high on Friday."

On the other hand, Berman said "the healthcare sector has been the most important positive outlier, with the help of the rally in biotech stocks."

Meanwhile, President Donald Trump threatened China with higher U.S. tariffs on its goods unless Beijing agrees on a trade pact with Washington. Trump issued the warning while speaking at the White House during a cabinet meeting.

Hu Xijin, editor of the Global Times, a state-controlled Chinese newspaper, wrote on Twitter that if "President Trump believes China's economy is crumbling and Beijing will eventually make decisive concessions, he has to wait until (Trump's daughter) Ivanka becomes the president to sign trade deal with China."

"Chinese economy continues to grow with strong consumption, people are optimistic," he tweeted.

The U.S. decision Monday to grant a 90-day extension to American companies doing business with China's Huawei Technologies suggests the administration has adopted a flexible stance toward dealing with Beijing.

Boeing (BA) - Get Report dipped slightly to $ 367.08 the company said it plans to revamp parts for thousands of 737s after the National Transportation Safety Board called for a redesign after investigating a deadly engine blast on a Southwest Airline  (LUV) - Get Report flight last year. Earlier Boeing booked $3.6 billion in new orders for its still-grounded 737 MAX jet at the Dubai Air Show. The aerospace giant continues to estimate a potential December return to service for the grounded aircraft.

Kohl's (KSS) - Get Report , the worst performer on the S&P 500, fell 19% to $47.02 after the struggling retailer posted weaker-than-expected third-quarter earnings and lowered its full-year profit guidance.

TJX Cos. (TJX) - Get Report rose 1.8% to $60.64 after the discount retail clothing chain beat analysts' forecasts quarterly sales and earnings forecasts.

Medicines Co. (MDCO) - Get Report surged 20% to $70.21following a report that suggested the cholesterol drug maker has attracted takeover interest from Swiss pharmaceutical giant Novartis AG (NVS) - Get Report , which was up slightly to $90.40.

In economic news, housing starts increased 3.8% to a seasonally adjusted annual rate of 1.314 million units in October, the Commerce Department said. Data for September was revised to show homebuilding declining to a pace of 1.266 million units, instead of decreasing to a rate of 1.256 million units as previously reported.

Building permits surged 5% to a rate of 1.461 million units in October, the highest level since May 2007.

"The lag between permit and completion in multi-family housing is quite long, about 15 months and the trend in permits has only been rising for only a few months, so the vacancy rate will remain under pressure for another year at least," said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

Mike Loewengart, vice president of investment strategy at E*Trade, said "housing is an economic bellwether and this serves as another proof point that there is some strength in economic fundamentals."

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