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.
-
Rally Fades on Mixed AI Revolution News: Stock Market TodayAll three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
Stretch Your Holiday Shopping Budget Further with These Under-$50 Gifts That Don't Feel CheapAmazon October Prime Day is the perfect chance to nab some under-$50 gifts that feel more expensive than they are (because normally they would be).
-
Rally Fades on Mixed AI Revolution News: Stock Market Today
All three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
S&P, Nasdaq Hit New Highs: Stock Market TodayA late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
With Buffett Retiring, Should You Invest in a Berkshire Copycat?Warren Buffett will step down at the end of this year. Should you explore one of a handful of Berkshire Hathaway clones or copycat funds?
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market TodayThe lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
Stocks at New Highs as Shutdown Drags On: Stock Market TodayThe Nasdaq Composite, S&P 500 and Dow Jones Industrial Average all notched new record closes Thursday as tech stocks gained.
-
S&P 500 Sees New Highs on Shutdown Day: Stock Market TodayMost of its components were in the red, but the S&P 500 Index still managed to hit a new intraday all-time high.
-
Stocks Close September on a High Note: Stock Market TodayA little bit of late risk-on behavior was enough to lift stocks into the green on the last day of September.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
