Midday Report: Goldman Cuts Tesla; Trump to Bump Up Defense Spending

Stocks fluctuated as President Donald Trump offered crumbs of his budget plan that focused heavily on defense spending. The incoming budget proposes a $54 billion bump in military spending, which will be offset by cuts to other agencies. Pending home sales in January fell to their lowest level in a year as lower inventory failed to meet high demand. The number of sales wherein a contract has been signed but a deal not yet closed fell by nearly 3%. Tesla (TSLA) - Get Report slumped after Goldman Sachs downgraded it to sell from neutral. Analysts said the Model 3 launch will likely be delayed, leading to higher free cash flow burn. Urban Outfitters (URBN) - Get Report was downgraded to sell at MKM Partners. The firm warned of deteriorating sales and margins at its Anthropologie store chain.