Stocks were hit with a second day of selling, as the energy sector (-2.3%) retreated following its recent run higher and data showed new housing starts fell dramatically in April.
"Commodities markets are self-correcting… [and] what sometimes happens is a surge in prices can sap demand," says Michael Reinking, senior market strategist for the New York Stock Exchange.
"This was somewhat on display this morning as the new housing starts number fell 9.5% (month-over-month) following the well-documented surge in lumber prices over the last year. There is still plenty of underlying demand as building permits were flat m/m."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
One bright spot today was Walmart (WMT, +2.2%), which jumped after the mega-retailer reported stronger-than-expected Q1 results and raised its full-year forecast.
"Walmart was the top-performing member of the Dow today based on a positive earnings surprise and implications that big box stores are weathering the coronavirus reopening phase in good shape," says David Keller, chief market strategist at StockCharts.com.
"The stock jumped up to $145 earlier today, taking the stock above key trendline resistance and continuing the recovery from a low around $125 in earlier March. Walmart would need to remain above the $135 level to continue its current bullish trend. The real question for WMT is the sustainability of recent price gains in the face of broad selling pressure for equities and uncertainty about economic conditions in the coming months."
WMT's strength wasn't enough to keep the Dow Jones Industrial Average in the black, with the index falling 0.8% to 34,060 on weakness in oil major Chevron (CVX, -3.0%). The S&P 500 Index followed suit, shedding 0.9% to 4,127.
Other action in the stock market today:
- The Nasdaq Composite couldn't hold on to earlier gains, falling 0.6% to 13,303.
- The Russell 2000 dropped 0.7% to 2,210.
- Home Depot (HD, -1.0%) reported first-quarter earnings and revenues that easily beat estimates. The Dow stock still closed lower amid broad-market headwinds.
- U.S. crude futures gave back 1.2% to settle at $65.49 per barrel.
- Gold futures eked out a fractional gain to end at $1,868.00 an ounce.
- The CBOE Volatility Index (VIX) spiked 8.2% to 21.34.
- Several high-profile retail earnings roll in this week, with Cisco Systems (CSCO) among the top ones to watch.
Buffett's Latest Stock Picks
The most important announcement over the past 24 hours, for Buffettologists at least, was the release of Berkshire Hathaway's (BRK.B) latest holdings list.
Warren Buffett, the famed CEO of Berkshire, revealed his firm's highly anticipated 13F filing on Monday night, showing the Oracle of Omaha and his team did a lot more selling than buying in the first quarter of 2021.
In addition to reversing course on a Dow stock that Berkshire had just piled into in the second half of 2020, Buffett continued to take a hatchet to the Berkshire Hathaway equity portfolio in big bank stocks. There was some notable action on the buy side, too, with "Uncle Warren" boosting his stake in a major grocery chain and opening a new position, fittingly, in the insurance industry.
To see which stocks Buffett bought and sold to start the year, read on as we take a closer look at the 18 moves he made in his portfolio over the most recent quarter.
-
3 Ways High-Income Earners Can Maximize Their Charitable Donations in 2025Tax Deductions New charitable giving tax rules will soon lower your deduction for donations to charity — here’s what you should do now.
-
Another State Quietly Bans Capital Gains Taxes: Will Others Follow?Capital Gains A constitutional amendment blocking future taxes on realized and unrealized capital could raise interesting questions for other states.
-
Dow Climbs 327 Points, Crosses 48,000: Stock Market TodayMarkets are pricing the end of the longest government shutdown in history – and another solid set of quarterly earnings.
-
Dow Climbs 559 Points to Hit a New High: Stock Market TodayThe rotation out of tech stocks resumed Tuesday, with buying seen in more defensive corners of the market.
-
Risk Is On Again, Dow Jumps 381 Points: Stock Market TodayThe stock market started the week strong on signs the government shutdown could soon be over.
-
Stocks Bounce But End With Big Weekly Losses: Stock Market TodayThe stock market rout continued on Friday, but a late-day burst of buying power brought the main indexes off their session lows.
-
Risk Is Off Again, Dow Falls 397 Points: Stock Market TodayMarket participants are weighing still-solid earnings against both expectations and an increasingly opaque economic picture.
-
Stocks Rally as Investors Buy the Dip: Stock Market TodayMost sectors are "go" only a day after talk of bubbles, extended valuations and narrow breadth undermined any kind of exuberance.
-
Stocks Retreat as Bubble Worries Ramp Up: Stock Market TodayValuation concerns took hold on Wall Street today, sending Palantir and its fellow tech stocks lower.
-
Amazon Surge Sends S&P 500, Nasdaq Higher to Start November: Stock Market TodayAmazon inked a $38 billion cloud deal with OpenAI, which sent the stock to the top of the Dow Jones on Monday.
