Indexes had nice gains most of the day on a good housing number but sold off a bit late in the day. This is the third day the S&P 500 has failed to break over year highs but the bullish take on this is we just came off a ferocious two week rally and are now consolidating before making a new push higher. The S&P 500 finished flat while the NASDAQ gained 0.10%.
New home sales spiked 9.6 percent in January, jumping to a 5-1/2 year high, to a seasonally adjusted annual rate of 468,000 units, according to the Commerce Department. Economists had forecast new home sales falling to a 400,000-unit pace.
Obviously no changes in the indexes
The past few days has helped the indexes catch their breath a bit and let the moving average move up some. We can see the NYSE McClellan Oscillator has come back from extreme overbought conditions.
The housing sector obviously reacted well today breaking out to a yearly high.
Target (TGT) had a big day after the company said the December data breach shaved two cents a share off its earnings and impacted sales as well, though CEO Gregg Steinhafel said sales trends have improved in recent weeks.
Lowe’s (LOW) jumped after the home improvement retailer reported strong revenue growth.
Chinese search engine Baidu (BIDU) reported after the close and shot up 8% to $187 in after hours. As with all these internet companies, investors are focused on their mobile figures so Baidu did well here.
Baidu earnings beat fourth-quarter forecasts late Wednesday as the search giant’s big investment in mobile gaming and app distribution starts to pay off. China’s dominant search giant earned $1.39 a share excluding various items, up 8% vs. a year earlier, as it continues to invest heavily. Analysts expected $1.34. Revenue climbed 55% to $1.57 billion, topping views for $1.53 billion. It was the third straight quarter of accelerating growth. Baidu said 20% of revenue came via mobile, up from 10% in Q2, the last time it disclosed mobile’s contribution. Wedge Partners analyst Juan Lin had expected 17% in Q4, which would have been a 300% year-over-year gain.