Other than a brief moment at the start of the day and a few minutes mid afternoon the S&P 500 was in the red the entire session as stocks continue to act weak. The S&P 500 closed down 0.38% and the NASDAQ 0.14%. Ironically again “good news was bad news” as the one key economic report this week – retail sales – came in better than expected.
The Commerce Department said retail sales increased 0.7 percent last month as Americans bought automobiles and a range of other goods. November’s retail sales increase was the largest in five months and followed a 0.6 percent rise in October. Economists polled by Reuters had forecast retail sales, which account for about 30 percent of consumer spending, advancing 0.6 percent after a previously reported 0.4 percent gain in October.
We remain overbought for the second session per the NYSE McClellan Oscillator.
It was a rough session for yoga apparel maker Lululemon (LULU) as the company said fewer customers are visiting its stores and supply-chain issues are hitting sales in the crucial fourth quarter.
Southwest Airlines (LUV) surged as Bank of America Merrill Lynch raised its rating on the airline operator’s stock to “buy.” Airlines seem a bit overbought on the intermediate term but sure have been one of the star groups of 2013.
Facebook (FB) surged on the S&P 500 addition we mentioned in yesterday’s piece.